CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (24/2026 Disciplinary Board) (21/2026 Authority) and imposition of a fine against Arab Investment Company, for Violating the Rules of Clients’ Funds and Clients’ Assets

Announcement regarding issuance of Disciplinary Board Resolution No. (24/2026 Disciplinary Board) (21/2026 Authority) and imposition of a fine against Arab Investment Company, for Violating the Rules of Clients’ Funds and Clients’ Assets

For the following reasons:

Violation of the provision of  Article (2-3) of Module Seven (Clients’ Funds and Clients’ Assets) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It was proven to the CMA through reviewing some of clients’ investment portfolios pledged for a bank that the Company failed to distinguish the clients’ assets and funds according as follows:
a. Registered the ownership documents of real estates included within the contents of investment portfolios pledged for a bank under the name of the Company.

2. Registered the allocation contracts of lands in service, craft and commercial areas (usufruct rights) issued by Public Authority for Industry under its name, and then included them within the contents of the investment portfolios pledged for a bank.

The Resolution included the infliction of the following penalty: -
" Levying a Fine on Arab Investment Company in the amount of KWD 50,000 (fifty thousand 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 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.

Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.