CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (45/2017 Disciplinary Board) (102/2017 Authority)
The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Wednesday 23/08/2017 on violation No. (45/2017 Disciplinary Board) (102/2017 Authority) filed against:
National Investments Company in its capacity as manager of Mawarid Industrial and Petroleum Services Fund.
First: The Company, in its capacity as manager of Mawarid Industrial and Petroleum Services Fund shall pay a fine of KWD 1000 for each of the three violations, for violating the concentration percentage in unlisted shares and investing them in an unlisted company in Arab markets, which is different from what is mentioned in the Fund’s Articles of Association, and not informing the CMA of the violations.
This punishment is due to the following violations:
1- Violating the provision of clause (8) of attachment No. (1) of Appendix (4). It invested in unlisted companies in a total of KWD 970,327/-, which is 12.6% of the assets net value in the Fund’s budget as on 31/12/2016, and not reducing the concentration to less than 10%.
2- Violating clause (2) of Article (2-31-3). It did not inform the CMA when violating the investment limit as mentioned above in clause (1).
3- Violating the provision of clause (2) of Article (1-5) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It did not comply with the provision of Article (8) of the Fund’s Articles of Association, and it was confirmed that the Fund has an investment in Kuwait Energy Co. located in UK in a total of KWD 592,204 and not in Arab markets.
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 rules 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.