CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (43/2017 Disciplinary Board) (110/2017 Authority)
The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Thursday 03/08/2017 on violation No. (43/2017 Disciplinary Board) (110/2017 Authority) filed against:
1) Al-Madina for Finance & Investment
2) Kuwait Clearing Company
That is by: “First: The first Company (Al-Madina for Finance & Investment) shall, in its capacity as manager of Al-Madina Fund, pay KWD 3000 for not keeping sufficient liquidity in the Fund to face future obligations.
Second: The second Company (Kuwait Clearing Company) shall pay KWD 2000. It did not notify the Authority, in its capacity as Investment Controller of the Fund, about the Company’s non-compliance in keeping sufficient liquidity in the Fund”.
This punishment is due to violating the following:
First: Al-Madina for Finance & Investment:
Violating the provision of Article (2-14-3) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. The Company did not provide the Fund with sufficient liquidity to meet any obligations.
Second: Kuwait Clearing Company:
Violating the provision of Article (2-15) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. The Company, in its capacity as Investment Controller of Al-Madina Fund which is managed by Al-Madina for Finance & Investment, did not notify the Authority of the Company’s violation in its capacity as manager of Al-Madina Fund.
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.