Title: Press Release: The Capital Markets Authority Opinion Poll on the Draft Regulations Regarding Fintech Services Project (Securities Based Crowdfunding and Digital Financial Advisor – Robo Advisor)

Kuwait , September 27, 2022 - As the Capital Markets Authority's (CMA)  believes in the importance of Fintech and the innovative use of technology in designing and providing financial services and products, its efforts towards implementing CMA’s strategic project resulted in the development of an integrated regulatory framework for Fintech services and products related to securities activities, whose general objective is to prepare regulatory controls and supervisory procedures in accordance with the best international applications and practices in Fintech, and pursuant to the provisions and objectives of the relevant articles of the CMA’s law, which would contribute to the protection of people dealing in Fintech activities and services, and the protection of their rights, as well as supporting entrepreneurs and innovators in the area of Fintech. In general, this project will have a positive impact in supporting Kuwait's Vision 2035, which aims to make the State of Kuwait a regional financial and commercial center. On the other hand, the project will contribute to diversifying investment products and finding new investment channels that contribute to diversifying the national economy and achieving financial inclusion. Moreover, the CMA’s regulation of this area would contribute to providing direct channels of dealing that bring together investors interested in investing in SME’s, whereby small investors and entrepreneurs have the possibility to invest in businesses that benefit them financially. This will lead to increasing the level of investment in SME’s and liquidity in the market by providing other financing channels (other than traditional investment channels) for SME’s, in addition to enhancing awareness and knowledge of these parties in the financial and investment aspects, which will contribute to the advancement of these parties with their financial transactions in the Kuwaiti financial market.

In this regard, the CMA’s efforts in this project have resulted in the completion of the preliminary draft of the regulatory framework for Fintech, which emphasized on preparing the draft provisions regulating the first set of services, which was represented in the draft regulations for Securities Based Crowdfunding and Digital Financial Advisor – Robo Advisor, and within the framework of the CMA’s keenness on the importance of knowing the opinions of all market participants as well as those concerned with securities activities in general with its various orientations related to the regulation of securities activities, which aims to take into account their ambitions regarding the CMA’s continuous updates on the Executive Bylaws of  Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments. Consequently, the CMA has sent an invitation to the public, and direct invitations to those concerned in this area from the public and private sectors to participate in the opinion poll on the preliminary draft of the aforementioned Fintech regulations, in order to list all the comments and proposals in this regard, in preparation for the completion of the legal reviews to ensure the necessary local regulatory and legislative amendments to the provisions of the regulatory framework and other related provisions, which would enable all those concerned with Fintech services and products to participate without facing any obstacles, as the period specified for opinion poll ends on Sunday, October 9, 2022 .

In the same context, the Capital Markets Authority will organize an awareness workshop on the preliminary draft of the regulatory framework for the aforementioned Fintech regulatory framework, throughout the aforementioned survey period, during which the content of the draft will be explained and all inquiries answered.

Those interested and wishing to view the preliminary draft of the regulatory framework for the aforementioned Fintech  framework and  participate in submitting opinions and proposals can visit the CMA's website and access the special electronic link in this regard.

Click here to access the website

Link to the Opinion Poll on the Draft Fintech Regulations services

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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