CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (64/2023) Disciplinary Board - (85/2023) Authority, and imposition of a fine against KFIC Brokerage Company For violating the rules of Securities Activities and Registered Persons and Conduct of Business

Announcement regarding issuance of Disciplinary Board Resolution No. (64/2023) Disciplinary Board - (85/2023) Authority, and imposition of a fine against KFIC Brokerage Company For violating the rules of Securities Activities and Registered Persons and Conduct of Business.

For the following reasons:
1. Violation of the provision of Paragraph (a) of Item (2) of Article (1-27) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the CMA through the recorded phone calls that the Company failed to comply with the aforementioned paragraph. One of the employees of KFIC Brokerage Company, registered with the CMA as a representative of securities broker activity for providing advice to the clients, advised one of the clients to wait until the price of a security changes (for purchase/sell), in addition to having a conversation with one of the clients outside the scope of the role entrusted to him, which is to receive clients’ orders only, by advising one of his clients. It should be noted that providing advice requires obtaining the necessary licenses from the CMA (the License of Representative of Investment Advisor Activity).

2. Violation of the provision of Item (3) of Article (6-8) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the CMA through the recorded phone call of the client that the broker, one of the employees of KFIC Brokerage Company registered with the CMA as a representative of securities broker activity, failed to define the order period and date.

The Resolution included the infliction of the following penalty: -
“Levying a fine against KFIC Brokerage Company in an amount of KWD 1,000 (one thousand Kuwaiti Dinars) for each of the first and second violations”.

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.

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