CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (55/2017 Disciplinary Board) (144/2017 Authority)
The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Thursday 28/09/2017 on violation No. (55/2017 Disciplinary Board) (144/2017 Authority) filed against:
Al-Safat Investment Company
The Company shall pay KWD 3000 for not taking sufficient and prompt measures when one its clients deviated from the objective of the establishment of its portfolio which is custody.
This punishment is due to violating the provision of clause (3) (Custody Investment Portfolio) of (First: Investment Portfolio Definition) of Appendix (1) “Definition, Goals, Components and Types of Securities Investment Portfolios” of Module Seven (Clients’ Funds and Clients’ Assets) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. They executed during the third and fourth quarters of 2016 exaggerated transactions and trades for (676) transactions based on a client’s orders for a securities portfolio whose form and objective is “custody”.
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.