CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (67/2017 Disciplinary Board) (185/2017 Authority)
The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Thursday 23/11/2017 on violation No. (67/2017 Disciplinary Board) (185/2017 Authority) filed against:
1) UniCap Investment and Finance Company (UNICAP)
2) Saud Hamad Al-Humaydi (Baker Tilly Kuwait)
3) Waleed Abdullah Al-Osaimi (Al-Aiban, Al-Osaimi & Partners-Ernst & Young)
First: The Company shall pay a total of KWD 2,000 for each of the three violations, for violating the rules of disclosing material information.
Second: The second defendant shall pay a total of KWD 2,000 and the third defendant shall pay KWD 1,000 for not holding periodical meetings with the Internal Audit Committee in the Company (the first defendant).
The punishment is due to violating the following:
First: UniCap Investment and Finance Company (UNICAP)
a. Violating the provisions of item (3) of Article (4-1-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010, and their amendments. It did not disclose purchasing one of its real estate that is worth KWD 3.1 million on 30/03/2015. It represents 6.4% of the total Company’s assets of around KWD 48.5 million as on 31/12/2015.
b. Violating the provisions of item (2) of Article (4-1-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010, and their amendments. It did not disclose the entering into an investment contract in the UK that is worth KWD 2.4 million on 23/11/2016. It represents 5.5% of the total Company’s assets of around KWD 43.9% million as on 31/12/2016.
c. Violating the provisions of Article (4-2-1) of Module Ten (Disclosure & Transparency) of the Executive Bylaws of Law No. 7 of 2010, and their amendments. It did not promptly disclose a number of material information for the cases mentioned below:
# |
Material Information |
Date of Signing the Contract |
Date of Disclosing the Material Information |
1 |
A subsidiary obtained financing facilities from Boubyan Bank of around KWD 7.5 million. |
22/05/2016 |
18/07/2016 |
2 |
Settlement of debts of a client of around KWD 2.9 million. |
21/12/2015 |
24/02/2016 |
3 |
A subsidiary sold land for KWD 4.1 million. |
29/12/2015 |
14/01/2016 |
4 |
A subsidiary sold land for KWD 1.7 million. |
20/04/2016 |
25/04/2016 |
Second: Mr. Saud Hamad Al-Humaydi -Baker Tilly Kuwait
- Violating the provision of item (4) of Article (3-4-6) of Module Five (Securities Activities and Registered Persons (of the Executive Bylaws of Law No. 7 of 2010, and their amendments. He, in his capacity as external auditor of UniCap Investment and Finance Company, did not hold any meetings with the Internal Audit Committee for the financial year ended on 31/12/2016.
Third: Waleed Abdullah Al-Osaimi (Al-Aiban, Al-Osaimi & Partners-Ernst & Young):
-Violating the provision of item (4) of Article (3-4-6) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010, and their amendments. He, in his capacity as external auditor of UniCap Investment and Finance Company, held only one meeting with the Internal Audit Committee on 08/02/2017 for the financial year ended on 31/12/2016 without the rest of the quarters.
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.