CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (13/2023) Disciplinary Board - (182/2022) Authority, and imposition of a fine against Ali Owaid Rukhais Awad - Al- Waha Auditing Office – in his capacity as liquidator for Amwal Cash Fund (under liquidation)
Announcement regarding issuance of Disciplinary Board Resolution No. (13/2023) Disciplinary Board - (182/2022) Authority, and imposition of a fine against Ali Owaid Rukhais Awad - Al- Waha Auditing Office – in his capacity as liquidator for Amwal Cash Fund (under liquidation)
For violating the rules of Collective Investment Schemes.
For the following reasons:
1) Violation of the provision of Article (2-37-12) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments which stipulates:
“The liquidator shall collect the rights payable to the Fund by third parties or by the Fund Manager and deposit the collected amounts in a bank account for the Fund in the liquidation phase…”.
In his capacity as liquidator for Amwal Cash Fund (under liquidation), he has withdrawn the fund’s money and deposited them in his own account without adhering to depositing such amounts in the fund’s bank account.
2) Violation of the provision of Item (4) of Article (2-37-7) of Module Thirteen (Collective Investment Schemes) of the same Executive Bylaws which stipulates:
“4. Provide Care of a Prudent Person to maintain the Fund’s Assets and rights.”
In addition to the definition of (Care of a Prudent Person) included in Module One (Glossary) of the Executive Bylaws which stipulates:
“Care undertaken by a Person of sufficient experience and commitment to perform his duties.”
In his capacity as liquidator for Amwal Cash Fund (under liquidation), he failed to perform his duties towards the fund by providing care of a prudent person to maintain the fund’s assets and rights.
The Resolution included the infliction of the following penalty: -
“Levying a fined against Ali Owaid Rukhais Awad - Al- Waha Auditing Office – in his capacity as liquidator for Amwal Cash Fund (under liquidation) in an amount of KWD 1,000 (one thousand Kuwaiti Dinars) 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 rules 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.