Title: Announcement regarding issuance of Disciplinary Board Resolution No. (25/2025 Disciplinary Board) (54/2025 Authority) and imposition of a fine against: Kuwait & Middle East Financial Investment Company (KMEFIC) for violating the Rules of Capital Adequacy Regulations for Licensed Persons.

Announcement regarding issuance of Disciplinary Board Resolution No. (25/2025 Disciplinary Board) (54/2025 Authority) and imposition of a fine against: Kuwait & Middle East Financial Investment Company (KMEFIC) for violating the Rules of Capital Adequacy Regulations for Licensed Persons.

For the following reasons:
Violation of the provision of Article (3-1) of Module Seventeen (Capital Adequacy Regulations for Licensed Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It was proven that the Company has repeatedly failed to comply with the provisions of Module Seventeen (Capital Adequacy Regulations for Licensed Persons), as the percentage of mentioned Company’s capital adequacy reached 24.4% on 31/12/2024, and 32% on 31/03/2025, even though the compliance rate shall be 100% consistently.

The Resolution included the infliction of the following penalty: -
“ Levying a fine on Kuwait & Middle East Financial Investment Company (KMEFIC) in an amount of KWD 10,000 (ten thousand Dinars) for the attributed violation with the necessity to address the Company’s Eligible Regulatory Capital to reach 100% or more of the Risk Based Capital Requirement.”

In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these Laws in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.