Title: Press Release: The Regulatory and Supervisory Work of the CMA

Kuwait – May 22, 2023 - Since its establishment, the Capital Markets Authority (CMA) has adopted regulatory and supervisory legislations and instructions that are based on the best international practice and developed an organizational structure which includes organizational units that conduct supervision and control over the entities under its supervision in order to follow up their compliance with CMA’s rules and regulations. It has also taken the necessary measures to develop the financial market system in the State of Kuwait in order to achieve its objectives of regulating securities activities in a fair, competitive, and efficient manner, protecting securities activities’ investors, imposing the requirements of full disclosure in order to achieve fairness and transparency, and enhance public awareness of securities activities and of the benefits, risks and obligations arising from investments in securities and encourage their development.
Moreover, managing and executing the supervisory work by the CMA over the entities under its supervision within the fields of practicing their activities, preparing their financial statements, and managing their risks is performed in compliance with the Articles of Law No. 7 of 2010 and its Executive Bylaws and their amendments and within a framework of the approved rules, regulations, and standards, which includes approved standards of preparing financial statements and the applicable rules of corporate governance fields. The organizational units at the CMA monitor any cases of non-compliance with those regulations and standards and refer them to the impartial investigation entity, which shall either reserve the suspected crime or refer it to the Disciplinary Board to decide on the disciplinary accountability referred to it, in addition to deciding on the submitted grievances in accordance with the Disciplinary Board authorizations stipulated in Article (140) of CMA Law No. 7 of 2010. The Disciplinary Board’s independency from the CMA shall be taken into account, as it is formed of 3 members and chaired by a judge that is elected by the Supreme Judicial Council in addition to two members experienced in financial, economic, and legal affairs.
Furthermore, the CMA continuously seeks to develop the market system through studying the addition of new investment instruments and products that can be listed and whether the market needs them or not, follows up the addition of these instruments and products in collaboration with entities inside and outside the CMA, reviews and develops the controls of these instruments and products in line with the changes of the securities market in Kuwait.
It is worth mentioning that the independency of CMA’s work and decisions and the activation of its regulatory and supervisory tools over the entities subject to its supervision contributed to meeting the requirements and conditions of the membership of international organizations such as IOSCO. Moreover, the important steps taken by the CMA to develop the capital markets systems in cooperation with the related parties contributed to the upgrade of Boursa Kuwait to the emerging market status on MSCI index, in addition to CMA’s continuous work to develop the capital markets systems to be upgraded to an advanced emerging market on FTSE Russell index.
Based on the provision of Article (186) of the Companies Law No. 1 of 2016 which states that 
The concerned Supervisory Authorities shall set the principles of corporate governance of the companies that are subject to their respective supervision, in a manner that ensures the best protection and balance between the interests of the management of the company and its shareholders, as well as, other interested parties in relation to it., the CMA pays great attention to following up the compliance of the entities’ subject to its supervision with the rules of corporate governance that are regulated in Module Fifteen “Corporate Governance” of the Executive Bylaws of the CMA Law No. 7 of 2010.
Accordingly, the CMA will spare no effort in implementing of its objectives in order to contribute to upgrading the national economy and enhancing the confidence of local and foreign investors in the Kuwaiti market through upgrading the legislative and supervisory regulation of the capital market in Kuwait and in line with the best international practice, and in order to place the Kuwaiti market on the international investor map. In addition, the CMA continuously seeks full cooperation and coordination between all the components of the capital market in Kuwait in order to achieve such objectives and work to serve our dear country Kuwait under the wise leadership of His Highness the Emir and His Highness the Crown Prince.

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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