Title: Announcement regarding issuance of Disciplinary Board Resolution No. (08/2023) Disciplinary Board - (155/2022) Authority and imposition of a fine against each of: 1- Al-Safat Investment Company, 2- Fahad Abdulrahman Al-Mukhaizim in his capacity as Chairman of the Committee, 3- Mishaal Ahmed Al-Jareki in his capacity as Member of the Committee, 4- Naser Bader Al Sharhan in his capacity as Vice Chairman of the Committee, 5- Dr. Anwar Ali Al Naqi in his capacity as Vice Chairman of the Committee (formerly) For violating the rules of (Module Sixteen) of the Executive Bylaws of Law No. 7 of 2010 and their Amendments and the rules of Corporate Governance

Announcement regarding issuance of Disciplinary Board Resolution No. (08/2023) Disciplinary Board - (155/2022) Authority and imposition of a fine against each of: 

1-  Al-Safat Investment Company.
2- Fahad Abdulrahman Al-Mukhaizim in his capacity as Chairman of the Committee.
3- Mishaal Ahmed Al-Jareki in his capacity as Member of the Committee.
4- Naser Bader Al-Sharhan in his capacity as Vice Chairman of the Committee.
5- Dr. Anwar Ali Al-Naqi in his capacity as Vice Chairman of the Committee (formerly).

For violating the Rules of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their Amendments and the rules of Corporate Governance.

For the following reasons:

First: Al-Safat Investment Company violated the following:
1) Provision of Article (2-7) of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the CMA that Al-Safat Investment Company failed to notify the CMA and comply with the issued guidelines of the non-compliance of one of its subsidiaries outside the State of Kuwait with one of the requirements of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments that are applicable in the State of Kuwait, which is the provision of Article (2-8) of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
Moreover, after reviewing the report of the internal reviewer of the mentioned subsidiary for the period that ended on 31/12/2022, it was proven that the Company has received cash payments from the clients which violates Article (2-8) of Module Sixteen previously mentioned.

2) Provision of Article (6-1) of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the CMA, through examining the mechanism and verification system of Al-Safat Investment Company and through examining the selected sample of clients, that the Company continued its failure to set adequate policies and procedures to ensure the implementation of all the obligations mentioned in the concerned ministerial resolutions.

Second: 
1- Fahad Abdulrahman Al-Mukhaizim in his capacity as Chairman of the Committee.
2- Mishaal Ahmed Al-Jareki in his capacity as Member of the Committee.
3- Naser Bader Al-Sharhan in his capacity as Vice Chairman of the Committee.
4- Dr. Anwar Ali Al-Naqi in his capacity as Vice Chairman of the Committee (formerly).

In their capacities as members of the audit committee in the company, they violated the provision of Item (11) of Article (5-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It was proven to the CMA that the Company’s audit committee failed to review and take the necessary measures regarding the remark observed by the inspection team concerning Article (6-1) of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments.

The Resolution included the infliction of the following penalty: -
"First: Levying a fine against Al-Safat Investment Company in an amount of KWD 3000 (three thousand Dinars) for the first attributed violations in its two parts and an amount of 1000 (one thousand Dinars) for the second attributed violation.

Second: Levying a fine against the members of the audit committee which are the following:
1- Fahad Abdulrahman Al-Mukhaizim in his capacity as Chairman of the Committee.
2- Mishaal Ahmed Al-Jareki in his capacity as Member of the Committee.
3- Naser Bader Al-Sharhan in his capacity as Vice Chairman of the Committee.
4- Dr. Anwar Ali Al-Naqi in his capacity as Vice Chairman of the Committee (formerly).
In an amount of 2000 (two 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.