Title: The Capital Markets Authority Enables Those Subject to Disciplinary Penalty the Right to Request Reconsideration of the Disciplinary Board Resolution

Kuwait – 10 March 2025, Within the framework of the Capital Markets Authority’s (CMA) pursuit to enhance the principle of fairness and confidence in the authority of issuing a disciplinary penalty, and to ensure fair procedures in light of the best practices and practical applications with regard to providing the maximum guarantees of fair justice to ensure the achievement of the objectives set forth in Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its amendments.

The CMA has issued today Monday 10/03/2025 Resolution No. (37) of 2025 on the amendment of the rules of submitting a request for reconsideration of the Disciplinary Board Resolutions to the same Board that are included in 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 Resolution included the amendment of Article (5-18) of Chapter Five (Request for Reconsideration of the Disciplinary Board Resolutions) of Module Three (Enforcement of the Law) of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities. The amendment enabled all those against whom a penalty is issued, as set out under the Law, may submit a reasoned petition request for reconsideration to the Disciplinary Board after payment of the prescribed fee and in accordance with the form determined for this purpose.

The requests shall be submitted to the Disciplinary Board within three Business Days from the date of notification of the resolution. The Disciplinary Board shall decide on the request within five Business Days from the submission date. These procedures shall not conflict with the legal dates for submitting the grievance or appeal against the Disciplinary Board resolutions.

The latest amendment also included an independent form for submitting grievances against the Disciplinary Board Resolutions upon the occurrence of one of the cases included in the mentioned module.

This direction comes within the framework of developing the investment environment and enhancing confidence of investors of securities activities by providing fair legal mechanisms that permit the concerned parties to submit their applications to reconsider the disciplinary resolutions issued against them through the determined form whenever the legal reasons and justifications thereof were available. The Law also permits those against whom a penalty was issued to submit a grievance thereon before the CMA, noting that it is possible to resort directly to the judiciary without the need to submit a request or grievance.

The CMA confirms that it will continue developing it’s legislative and supervisory system to be in line with the best international practices and to ensure the implementation of fairness and protection of the rights of all relevant parties. It also invites all the investors in the financial markets to review the related laws and regulations to ensure compliance with the regulatory requirements and avoid committing violations.

Ends-
Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance regulations, and protect investors from unfair practices which violate 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: 1888898
Email: pr-media@cma.gov.kw