Title: Joint Press Release of the Central Bank of Kuwait and Capital Markets Authority

KUWAIT CITY, January 17, 2018 - In a joint press release, the Central Bank of Kuwait (CBK) and the Capital Markets Authority (CMA) announced that on January 17, 2018, a memorandum of understanding was signed at the Central Bank of Kuwait. It was signed by CBK’s Governor, Dr. Mohammad Y. Al-Hashel, and the Deputy Chairman of CMA’s Board of Commissioners and Acting Managing Director Mr. Mishaal M. Al-Usaimi. The joint press release clarified that the memorandum of understanding comes within the framework of coordination and cooperation between the CBK and the CMA regarding the definition of terms of reference in the field of supervision and oversight of certain aspects of the activities of the units subject to the supervision of the Central Bank, in addition to the financial instruments issued and traded that are subject to the CMA’s supervision.

The joint press release added that the memorandum represents an update of the memorandum of understanding signed between the two parties on 11/9/2011 to take account of regulatory updates and developments during the period since that date, especially in view of the amendment of some provisions of the CMA’s Law in May 2015 and its Executive Bylaws in November 2015, and the resulting new issues in the areas of joint work that require coordination. It dealt with many aspects in defining the coordination and competency frameworks to prevent any duplication or overlapping in the framework of the basic functions of the CBK and the CMA.

In addition, the MoU addressed the coordination of actions and procedures for existing investment companies prior to the issuance of the CMA's law, the licensing of securities activities for banks, the appointment of auditors, Sharia supervision, and acquisitions and mergers. The MoU also addressed the definition of regulatory responsibilities in the case of dual control, exchange of data and information and confidentiality according to international requirements. Other aspects in the MoU include defining the terms of reference for the public debt instruments (finance) and the Central Bank's tools for intervention in the money market, in addition to regulating the operations of the qualified central counterparty (CCP) in dealing with securities, and the clearing members.
 
The joint press release concluded by stressing that signing the MoU is part of the responsibility of the CBK and the CMA to achieve coordination and integration in the mechanisms and procedures among the state bodies.
 

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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, and amended by Law No. 108/2014. Pursuant to the Law, the Authority 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 Authority's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The Authority 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