CmaBoardReleases
Title: Press Release: The Guidelines for those Requesting the Right to Access Information, and the Rules and Procedures on CMA Announcements Regarding the Issued Disciplinary Board Resolutions and their Handling Methods
Kuwait, August 13, 2022 –As part of the CMA’s continuous endeavour to achieve transparency in the transfer and exchange of information and data, and enhance public awareness about securities activities and the resulting provisions, which are considered the most important requirements for the development of capital markets, and in order to establish clear concepts in the circulars and resolutions issued by the CMA to provide protection for persons dealing in securities activities, in particular the decisions issued by the Disciplinary Board and the resulting penalties for violators. Since CMA’s establishment under Law No. 7 of 2010 regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its amendments, the CMA have worked on regulating securities activities in a fair, transparent and efficient manner, grow the capital markets, and diversify and develop investment instruments and enhance investor protection, reduce systemic risks arising from securities activities and other objectives for which the CMA was established.
The dynamic role played by the CMA in the supervision of securities activities of licensed persons and listed companies, and all procedures performed to detect crimes and violations stipulated in the Law and its Executive Bylaws, as well as receiving complaints and reports of violations and crimes.
The CMA was keen to announce the results of the investigations it conducts and to publish the resolutions issued by the Disciplinary Board regarding disciplinary violations and the reports that are submitted to the Capital Market Prosecution on the suspicious occurrence of crimes pursuant to the law. Additionally, listed companies were complied to disclose at the Boursa Kuwait these disciplinary resolutions and the final judgments, whether conviction or clearing, and this is regulated by the Executive Bylaws provisions.
It is noteworthy that the Disciplinary Board is a quasi-judicial body independent from the CMA. The Board is formed in accordance with the provisions of Article 140 of the CMA’s Law. It is composed of three members headed by a judge delegated by the Supreme Judiciary Council and two members who are experienced in financial, economic, and legal affairs. The term of membership of the Disciplinary Board is three years and may be renewed. The Board decides in the disciplinary matters referred to it by the CMA and concerning the violation of the provisions of this Law, Bylaws or any decisions or instructions issued in connection therewith, and deciding in the appeals filed against the Securities Exchange decisions and the decisions taken by the Violations Committee thereat. The Disciplinary Board, when hearing these appeals is deemed to act as an appellate body and its rulings with regard thereto shall be final.
The Executive Bylaws have set forth the rules and procedures of the Disciplinary Board’s work and the manner in which it issues resolutions, and notify the concerned parties thereof. In order for the CMA to protect market participants, educate the public and implement a policy of full disclosure and other objectives, it was keen on announcing the resolutions issued by the Disciplinary Board, according to its media policy.
Article 147 of the same Law clarifies the appeal mechanism for any person against whom a penalty from the penalties set forth under this Law is issued. The appeal may be in writing before the CMA within fifteen days from the date on which he is notified of the decision in writing. The decision of the CMA to reject the appeal shall be final, but may be challenged before the Competent Court. Non-response to the appeal within one month from the date of submittal thereof shall be deemed to mean that the appeal has been declined., bearing in mind that the CMA announces the procedures for examining appeals once they are accepted. In all cases, the appellant may resort directly to the courts within the dates prescribed for this.
As for referrals to the Public Prosecution on suspicion of committing a capital market crime, whether against the CMA or people dealing in securities activities, the CMA was keen to announce these reporting’s in accordance with the provisions of the Law, especially since the Capital Market Prosecution is competent to investigate, act and prosecute in the crimes that fall within the jurisdiction of the Capital Market Court in accordance with the provisions of Article 114 of the Law, and the CMA’s none disclosure of the names of those referred to the Public Prosecution in suspected crimes or those referred from the Public Prosecution to the judiciary body is related to the competencies of the Capital Market Prosecution, which is considered the prosecution and the public representative in the public lawsuit. It is related to the general system, which follows the rule that the defendant is innocent unless a final judgment is issued. The CMA continues to follow up on the resolutions issued by the Public Prosecution, that are dismissed and an appeal is filed. It also follows on the implementation of the legal effects resulting from referral to the court or upon issuance of final judgments, which requires disclosure by the listed company.
Based on the foregoing, the CMA, as an independent body, has adopted a high, balanced and prudent policy in transparency through its announcements, that are related to complaints and reports, resolutions issued by the Disciplinary Board, and referrals it submits to the Public Prosecution.
This policy and precise procedural regulation takes into account the aspect of transparency, protection of the public of stakeholders, implementation of the disclosure policy, and compliance with confidentiality of data and information that may not be disclosed in accordance with Article 150, except in the cases stipulated by law. It also takes into account the legal restrictions of publishing provided for in other special laws, including Law No. 106 of 2013 on Anti-Money Laundering and Combating Financing of Terrorism, which prohibits the disclosure of referrals and notifications submitted by the regulatory bodies to the Financial Intelligence Unit on the suspected occurrence of crimes and violations stipulated in that law.
In addition, the CMA is one of the first authorities to set rules and regulations that facilitate the request to access information as resolved by Law No. (12) of 2020 Regarding the Right to Access Information of any natural person or corporate body who has an interest in obtaining information, unless the information is confidential or internal in nature. The CMA has also recently reinforced this by issuing a guideline for those requesting right to access information, which includes a classification of data and lists that were provided as an example to the type of information and documents that can and cannot be disclosed, the mechanism for submitting requests, responding to them and appeals. It also provided on its website an expanded and classified database, information and documents. It is indexed and available to everyone and contains all the information that can be viewed and of which a copy may be obtained free of charge. Those concerned shall only visit the website to verify the availability of the required information before submitting the application.
Link to the Guideline for the Right to Access Information Service
Ends-
Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance regulations, and protect investors from unfair practices which violate the CMA's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw