Title: Press Release: The Capital Markets Authority Registers the First Companies in its Register of Securities-Based Fintech Services

Kuwait, October 24, 2024 – Recognizing the significance of financial technology as a rapidly evolving sector with growing adoption among individuals and institutions both locally and internationally, the Capital Markets Authority (CMA) issued Module Nineteen (Financial Technologies) 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 on 15/01/2023. Through this Module, the CMA regulates the first batch of securities-based fintech services, namely securities-based crowdfunding and digital financial advisory. Subsequently, the CMA launched the initial implementation phase of Module Nineteen previously mentioned on 28/12/2023 in order to achieve the objectives of regulating these new services, facilitating the compliance process of the entities wishing to provide these services, and  for persons wishing to benefit from them.

The CMA is pleased to announce the registration of the first companies in its register of securities-based fintech services. This step marks the beginning of supporting the financial technology sector and enhancing the concept of financial inclusion in the State of Kuwait.

During the initial implementation phase of Module Nineteen (Financial Technologies), the CMA received registration applications from a number of  persons wishing to provide the financial technology services regulated by the CMA - namely securities-based crowdfunding and digital financial advisory - to be registered in the CMA’s register of securities-based fintech services. The CMA set a period from the beginning of the initial implementation phase on 02/01/2024 to 01/07/2024 as a period for submitting applications for registration in the CMA’s register of securities-based fintech services during the initial implementation phase, in addition to setting it as a transitional period for the persons providing any of the mentioned digital financial services for their clients to regularize their status before the issuance date of Module Nineteen (Financial Technologies). After reviewing the submitted applications and verifying that some of them meet all the terms and conditions, the CMA announces the registration of both Watani Investment Company and The Securities House Company in the register of securities-based fintech services to provide the digital financial advisory service , making them the first companies registered with the CMA for providing the financial technology services regulated by it, in accordance with the CMA’s Resolutions No. (144) of 2024 and No. (145) of 2024 issued on 24/10/2024.

Moreover, the CMA works on reviewing further applications submitted to it during the period open for submitting applications to ensure that they meet all the terms and conditions , with a view to registering them in its register of securities-based fintech services.

It is worth noting that you may view the companies registered in the register of securities-based fintech services at the CMA by visiting the webpage of financial technologies at the CMA’s website, which is continuously updated according to the resolutions issued by the CMA on this regard.

The CMA reiterates its invitation to all individuals, institutions, entities subject to its supervision, and all interested parties to participate in the survey of the first phase of evaluating the regulatory framework of the financial technology services regulated by the CMA and to submit their opinions and suggestions that contribute to enhance and develop the regulatory framework of financial technology services that will continue until 25/11/2024 by visiting the following link: https://cma.gov.kw/ar/web/cma/218.

In conclusion, the CMA invites the public to communicate with its regulatory unit concerned with financial technology regarding the regulatory framework of financial technology and its products and services, which will truly contribute to the integration of everyone’s efforts to support the CMA’s initiatives in developing the regulatory framework and enhancing its chances of success.

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Note 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