Title: Announcement regarding issuance of Disciplinary Board Resolution No. (30/2021) Disciplinary Board - (03/2021) Complaint and imposition of a fine against each of: 1- Al-Madina for Finance and Investment Company, 2- Emad Fahmy Assaf for violating the Rules of Clients’ Funds and Clients’ Assets and the Rules of Conduct of Business

Announcement regarding issuance of Disciplinary Board Resolution No. (30/2021) Disciplinary Board - (03/2021) Complaint and imposition of a fine against each of: 

1- Al-Madina for Finance and Investment Company. 
2- Emad Fahmy Assaf.

For violating the Rules of Clients’ Funds and Clients’ Assets and he Rules of Conduct of Business.

For the following reasons:
Violation of the provisions of Articles (2-1), (2-2), (5-1-1), (5-1-7), (5-1-8), and (5-1-9) of Module Seven (Clients’ Funds and Clients’ Assets) and Articles (1-2), (1-9), (3-1), (5-6), (5-7), and (5-9) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
The Company committed violations against its own portfolio pursuant to a contract of establishing the portfolio to manage its components and it notified to suspend any transactions of sale or disposal, which resulted in decreasing the share and its price and inflicted insolvable heavy losses on the complaining company.

The Resolution included the infliction of the following penalty: -

"First: - Levying a fine against the first complainant which is Al-Madina for Finance and Investment Company in an amount of KWD 50000 (fifty thousand Dinars) for the attributed violations.

Second: - Levying a fine against the second complainant which is Emad Fahmy Assaf in his capacity as the CEO of Al-Madina for Finance and Investment Company in an amount of KWD 10000 (ten thousand Dinars) for the attributed violations.

Third: - Ensuring the content of the CMA Resolution No. 25 of 2021 issued on 15/03/2021 Regarding Canceling the Securities Activities License of Al-Madina for Finance and Investment Company considering the company should safeguard company funds and assets including the contents in the investment portfolio subject of this complaint until they are handed over to those concerned with handling or managing or safeguarding pursuant to Article 67 of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority ad Regulating Securities Activities and its Amendments.”

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.