CmaBoardReleases
Title: A Statement from the Capital Markets Authority
Kuwait City, February 22, 2018 - The Capital Markets Authority announces, as a result of the on-site investigation reports performed by CMA investigation teams for Al-Robaeya Brokarage Company, Al-Waseet Financial Business Company and Al-Fouz Investment Company, due to the defaults in the settlement of some trading transactions in Boursa Kuwait, and the results of such reports which mentioned a number of suspected violations against these companies regarding their lack of compliance with some articles of Law No. (7) of 2010 regarding the Establishment of the Capital Markets Authority and Regulating Securities activities and its amendments, as well as non-compliance with some articles of its Executive Bylaws and its amendments, and the precautious measures of defaults in paying for some of the trading operations at Al-Robaeya Brokarage Company, the CMA decided the following:
- Referring all suspected violations included in the reports mentioned above to investigation at the CMA.
- Continue restricting Al-Robaeya Brokarage Company from practicing the financial brokerage activity, and restricting Al-Fouz Investment Company from practicing all activities licensed by the CMA, pending the conclusion of the Companies’ investigation.
- Restricting the activities of the Board of Directors and CEOs of Al-Robaeya Brokarage Company and Al-Fouz Investment Company for the period from 1/9/2017 until 31/12/2017, so that their work is limited to the management of the company only, and they shall not be registered in any (new) position of the Registered Employment Positions, pending the conclusion of the concerned Company's investigation.
- Restricting the activity of one of the brokers of Al-Robaeya Brokarage Company from practicing the activity of representative of a Securities broker registered with an Exchange, and suspending the decisions of any nomination applications for Registered Employment positions.
- Restricting the activity of one of the brokers of Al-Waseet Financial Business Company from practicing the brokerage activity registered with the CMA, and suspending the decisions of any nomination applications for Registered Employment positions.
- Restricting the activity of one of the brokers of Al-Waseet Financial Business Company from practicing the brokerage activity registered with the CMA, and suspending the decisions of any nomination applications for Registered Employment positions.
Pursuant to the provisions of Law No. (7) of 2010 and its Executive Bylaws and their amendments, the Capital Markets Authority reassures all persons dealing in securities activities that they will spare no effort in exercising and applying all powers granted to them in accordance with the law to follow these cases closely and take full action with all relevant parties and other parties related to the financial defaults and violations referred to in the on-site investigation reports, in order to provide protection to the persons dealing in the securities activities, and to ensure the fair settlement of transactions in securities.
Ends
Notes to Editors
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010, and amended by Law No. 108/2014. Pursuant to the Law, the Authority shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance Regulations, and protect investors from unfair practices which violate the Authority's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The Authority also aims to provide awareness programs related to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw