CMA LAW: Before Investing in Investment Funds

As part of the Capital Markets Authority's endeavour to enhance investment and legal awareness of parties related to securities activities, and in particular the individuals.

The CMA draws the attention of all investors in investment funds to the importance of ensuring that such funds have acquired the necessary licenses from the CMA before investing in them. The articles of association and the prospectus shall state that the fund's manager is currently licensed by the CMA. The CMA also notifies investors that their ownership of fund's investment units grants them all rights resulting from such ownership as they are owners of co-property.

The CMA emphasizes the importance of the fund's articles of association as they are considered the regulating law of the relationship between the fund's manager and the unitholders. Therefore, it shall contain all necessary information which assists investors in making a sound investment decision. Additionally, investors' approval and signature on a copy of the articles of association are required.

The prospectus shall include all necessary information which enables evaluating, managing, and predicting its chances by the investor before subscribing in the investment fund's prospectus. It shall also include a brief on the investment controller, custodian, sale commission, and sufficient information regarding any liabilities or privileges.

The CMA urges all investors wishing to invest in investment funds to take the above mentioned information into consideration before making their investment decision, as well as consulting persons licensed according to the CMA's Law in order to clear any ambiguity or doubt in the data or information.

Traders and licensed persons can visit CMA website (www.cma.gov.kw), KSE website (www.kse.com.kw), and the Twitter account @cma_kwt to keep up with the Authority's latest awareness announcements.

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.