Title: Announcement regarding issuance of Disciplinary Board Resolution No. (05/2025 Disciplinary Board) (115/2024 Authority) and imposition of a fine against: Kuwait & Middle East Financial Investment Company (KMEFIC) for violating the Rules of Capital Adequacy Regulations for Licensed Persons.

Announcement regarding issuance of Disciplinary Board Resolution No. (05/2025 Disciplinary Board) (115/2024 Authority) and imposition of a fine against: Kuwait & Middle East Financial Investment Company (KMEFIC) for violating the Rules of Capital Adequacy Regulations for Licensed Persons.

For the following reasons:
Violation of the provision of Article (3-1) of Module Seventeen (Capital Adequacy Regulations for Licensed Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It was proven that, through reviewing the capital adequacy report for the period that ended on 30/09/2024, the percentage of Company’s capital adequacy is less than the statutory limit, as it reached 20% in the end of the mentioned year despite the requirement  for it to be 100% constantly.

The Resolution included the infliction of the following penalty: -
“First: Rejection of the plea that the lawsuit is inadmissible due to issue preclusion.

Second: Levying a fine on Kuwait & Middle East Financial Investment Company (KMEFIC) in an amount of KWD 5,000 (five thousand Dinars) for the attributed violation with the necessity to address the Company’s Eligible Regulatory Capital to reach 100% or more of the Risk Based Capital Requirement.”

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.