CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (52/2023) Disciplinary Board (04/2023) Complaint, and imposition of a fine against: Ahli United Bank for violating the Provisions of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and the Rules of Collective Investment Schemes
Announcement regarding issuance of Disciplinary Board Resolution No. (52/2023) Disciplinary Board (04/2023) Complaint, and imposition of a fine against:
Ahli United Bank
for violating the Provisions of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and the Rules of Collective Investment Schemes
For the following reasons:
The complainant filed his complaint against Ahli United Bank - Kuwait, in which he said that the aforementioned bank, through its marketing employees, marketed investment funds in Kuwait, and he was invited by the bank’s marketing employees to invest in those funds and extend personal invitations to attend the launch of the project. The complainant added that it was during personal interviews and emails issued by the bank and based on guarantees from them that the amounts paid for investment and the profits due would be returned no later than 5 financial years, and accordingly, he subscribed to the aforementioned funds, but he was surprised after the agreed upon five-year period had passed that the investment official in the bank informed him that he should not expect positive results for another two or three years, emphasizing that the information provided upon his agreement was misleading, and added that he asked the bank to cancel his subscriptions to the aforementioned investment funds and return his money paid, via email several times and after more than 9 months of correspondence. The bank informed him that it had no standing in the matter because it was not a party to the aforementioned investment contracts.
The Resolution included the infliction of the following penalty: -
“First: The Disciplinary Board does not have authority to consider the first part of the complaint, which concerns the request to cancel subscriptions of investment funds and return the paid amounts.
Second: Levying a fine on Ahli United Bank in an amount of KWD 30,000 (thirty thousand Dinars) for the second part of the complaint related to marketing the units of a foreign collective investment scheme attributed violation without obtaining a license from the Authority.”
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.