CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (01/2023 Disciplinary Board) (149/2022 Authority) and imposition of a fine against each of: 1- Wethaq Takaful Insurance Company, 2- Fawaz Saad Abdullah Al-Mazroui in his Capacity as CEO of Wethaq Takaful Insurance Company, 3- Al-Sadiq Ahmad Abdullah Al-Tawali in his Capacity as Deputy CEO of Wethaq Takaful Insurance Company for violating the rules of Listing and Corporate Governance
Announcement regarding issuance of Disciplinary Board Resolution No. (01/2023 Disciplinary Board) (149/2022 Authority) and imposition of a fine against each of:
1- Wethaq Takaful Insurance Company.
2- Fawaz Saad Abdullah Al-Mazroui in his Capacity as CEO of Wethaq Takaful Insurance Company.
3- Al-Sadiq Ahmad Abdullah Al-Tawali in his Capacity as Deputy CEO of Wethaq Takaful Insurance Company.
For violating the rules of Listing and Corporate Governance.
For the following reasons:
First: Wethaq Takaful Insurance Company violated the provision of Article (1-14) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the CMA through studying the financial statements of Wethaq Takaful Insurance Company for the financial year that ended on 31/12/2021 that the Company failed to comply with Paragraph (5.5.1) and Paragraph (5.5.4) of the International Accounting Standard (9) (IFRS 9) upon measuring and recording loss of a value (Reclassification of Financial Assets) when classifying the following Items:
1- Due from the policyholders.
2- Good loan for the policyholders.
It proven to the CMA after studying the Item of due from policyholders and the good loan, which are financial assets listed in the consolidated financial statements for the financial year that ended on December 31, 2021, that the net balance is carried forward from previous years, which is considered an important indicator for the existence of loss in the value of the financial assets that requires the Company to study the loss in the value of those balances to prove the predicted credit losses allocation of the total balance.
Second: Each of:
1- Fawaz Saad Abdullah Al-Mazroui in his Capacity as CEO of Wethaq Takaful Insurance Company.
2- Al-Sadiq Ahmad Abdullah Al-Tawali in his Capacity as Deputy CEO of Wethaq Takaful Insurance Company.
They violated the provision of Item (4) of Article (3-10) of Module Fifteen (Corporate governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It was proven to the CMA through studying the financial statements of Wethaq Takaful Insurance Company for the financial year that ended on 31/12/2021 that they failed to play their mandated role through the Company’s failure to comply with Paragraph (5.5.1) and Paragraph (5.5.4) of the International Accounting Standard (9) (IFRS 9) upon measuring and recording loss of a value (Reclassification of Financial Assets) when classifying the following Items:
1- Due from the policyholders.
2- Good loan for the policyholders.
It proven to the CMA after studying the Item of due from policyholders and the good loan, which are financial assets listed in the consolidated financial statements for the financial year that ended on December 31, 2021, that the net balance is carried forward from previous years, which is considered an important indicator for the existence of loss in the value of the financial assets that requires the Company to study the loss in the value of those balances to prove the predicted credit losses allocation of the total balance.
The Resolution included the infliction of the following penalty: -
"First: - Levying a fine against Wethaq Takaful Insurance Company in an amount of KWD 10000 (ten thousand Dinars) for the attributed violation.
Second: - Levying a fine against each of:
1- Fawaz Saad Abdullah Al-Mazroui in his Capacity as CEO of Wethaq Takaful Insurance Company.
2- Al-Sadiq Ahmad Abdullah Al-Tawali in his Capacity as Deputy CEO of Wethaq Takaful Insurance Company.
in an amount of KWD 5000 (five thousand Dinars) on each one of them for the attributed violation.”
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.
![](/o/cma-theme/images/Chatbot-Hover-Icon.png)
We use cookies to ensure you get the best experience on our website.