Title: Press Release Regarding Resolution No. (11) of 2024

Kuwait – February 4, 2024 - The Capital Markets Authority issued on Sunday, corresponding to 4-2-2024 Resolution No. (11) of 2024 Regarding the Guidelines for the Valuation or Assessment of the Impairment of Assets. This resolution includes amending Appendix (1) of Module Eleven, in addition to amending Modules Five, Eight, Twelve, Thirteen, and Fifteen of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their Amendments.

The main amendments in the resolution primarily involve amending Appendix (1) of Module Eleven of the Executive Bylaws of the CMA's Law, which includes guidelines and minimum limits to be followed when evaluating or assessing the impairment of any asset – not just real estate assets – recorded in the financial statements based on the requirements of International Accounting Standards. The amendments also include adding obligations for investment advisor and asset valuators, according to the provisions mentioned earlier in the appendix. Additionally, the amendments in this regard include modifications to Module Thirteen of the Executive Bylaws of the CMA's Law, which pertain to provisions of Collective Investment Schemes. It is now required for the fund manager to evaluate the fund's assets in accordance with the provisions of the previously referred appendix, considering that amendments have been made to Modules Five, Eight, Twelve, Thirteen, and Fifteen regarding the necessity of complying with the requirements of Appendix (1) of Module Eleven when evaluating or assessing the impairment of assets.

Furthermore, it should be noted that the asset evaluation guidelines stated in Appendix (1) of Module Eleven, mentioned above, have been developed after an extensive study of the legislation and regulatory controls related to asset evaluation in the State of Kuwait. This study also involved examining sample experiences of regulatory bodies in different countries, in addition to referring to the International Valuation Standards (IVS) issued by the International Valuation Standards Council (IVSC). The opinions of companies and relevant entities in Kuwait regarding these guidelines were also taken into consideration.

Moreover, the Capital Markets Authority draws the attention of asset evaluation service providers under its supervision to the necessity of complying with the provisions of Resolution No. (11) starting from October 31, 2024. Licensed persons, listed companies in the securities exchange, and collective investment schemes are also required to adhere to the provisions of this resolution when issuing their financial statements (interim or annual) ending on December 31, 2024, and thereafter. The CMA will issue educational materials and circulars regarding the implementation of the asset evaluation guidelines mentioned in this resolution.

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Notes to Editors:

The Capital Markets Authority (CMA) of Kuwait was established pursuant to Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, and its amendments, approved by the Kuwaiti Parliament in February 2010. Under this Law, the CMA regulates and supervises securities activities, ensures transparency, fairness, efficiency, and observes listed companies’ implementation of Corporate Governance regulations. The CMA also protects investors from unfair practices and violations of the CMA's Law.

Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.

For further information, please contact:

Public Relations & Media Office

Tel: 22903062

Fax: 22903505

Email: pr-media@cma.gov.kw