CMA LAW: Circular No. (2) of 2020 Regarding Policies and Procedures for Emergency Plans and Follow-up of Business Continuity for Licensed Persons Whose Activities are Related to the Trading Activities at the Securities Exchange

Chairman of the Board of Directors

Greetings,

Based on the Cabinet’s decision in its meeting held on Monday 06/04/2020 regarding extending the precautionary suspension of all ministries and government institutions work due to the novel coronavirus, and in line with CMA's decision on 14/03/2020, the state facilities whose services are essential shall continue its operation, the Capital Markets Authority (CMA) will continue its necessary activities concerning trading in the Exchange throughout the official holiday, and in reference to what is stipulated in Article (2-1) of Module Six (Policies and Procedures of Licensed Persons) of the Executive Bylaws of Law No. (7) of 2010 regarding the establishment of  the Capital Markets Authority and Regulating Securities Activities and their Amendments, which stipulate that the Licensed Person shall prepare a manual of policies and procedures for emergency plans and ensuring business continuity; and to what is stipulated in Article (4-6) of the same Module referred to, which confirms the Authority's right to request reports specifically to ensure the business continuity of the Licensed Person.

 The Authority draws the attention of Licensed Persons whose activities are related to trading activities in the Exchange to provide the Authority with a report on the emergency plan and ensuring business continuity and the measures taken by the Licensed Person in this regard, with the need to provide the Authority with the required report via the following e-mail: (lrd@cma.gov.kw) latest by Sunday 19/04/2020.

In preparing the above-mentioned report, the Licensed Person must also observe the commitment as a minimum as stated in Article (6-3) of the same Module referred to, to ensure that all policies and plans taken in implementing the business continuity plan are identified.

In this regard, the Capital Markets Authority notes the necessity of updating the plan with the requirements of the current exceptional circumstances and the continuous follow-up of the current developments and the procedures followed by the Licensed Person under these conditions. In all cases, the highest care should be taken with the employees who are required to work at the headquarters of Licensed Person, and that all precautionary measures are taken to ensure their safety, taking into account the regulatory decisions issued by the state.

Prof. Ahmad A. Al-Melhem

Issued on: 12/04/2020

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