CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (39/2022 Disciplinary Board) (200/2021 Authority) and imposition of a fine against: KIC Financial Brokerage Company for violating the rules of Securities Exchanges and Clearing Agencies and the provisions of (Module Sixteen) of the Executive Bylaws of Law No. 7 of 2010 and their amendments
Announcement regarding the issuance of Disciplinary Board Resolution No. (39/2022 Disciplinary Board) (200/2021 Authority) and imposition of a fine against: KIC Brokerage Company for violating the rules of Securities Exchanges and Clearing Agencies and the provisions of (Module Sixteen) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
For its violation of the following:
1) Provision of Article (2-5-3) of Module Four (Securities Exchanges and Clearing Agencies) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the CMA that the Company has repeatedly failed to comply with Article (5-4-1-2) of the Rule Book issued by Kuwait Clearing Company, which was through reviewing a sample of clients. It was proven that the Company continued to implement securities purchase transactions for one of the heirs’ accounts.
This constitutes a non-compliance by the Company with the decision issued against it by the Disciplinary Board.
2) Provision of items (1) and (4) of Article (3-8) of Module Sixteen.
3) Provision of item (2) of Article (3-19) of Module Sixteen.
The two violations No. (2) and (3) are procedural and not substantive.
The Resolution included the infliction of the following penalty: -
"KIC Financial Brokerage Company is fined an amount of ten thousand Dinars for the first attributed violation and 1,000 Dinars for each of the second and third violations."
In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these Laws in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.
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