Title: Press Release: “Recurring Observations Monitored During Field Inspections and Mechanisms to Avoid Them” Spotlighted in an Awareness Workshop by the CMA

Kuwait, June 3, 2024 - As part of the Capital Markets Authority’s endeavor to continue its awareness role, including making possible efforts to ensure that entities subject to the CMA’s supervision are informed of the provisions of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, its Executive Bylaws, and amendments and other CMA regulations, and to ensure its compliance to those provisions and their proper application, an awareness workshop was held on Sunday and Monday, 2-3/6/2024 at the CMA’s headquarters, targeting representatives of companies listed on Boursa Kuwait Securities Exchange.

The workshop aimed to review the most common violations and recurring observations that are monitored through field inspections usually carried out by the CMA’s On-site Inspection Department on companies listed on the securities exchange, and to clarify the mechanisms for avoiding and addressing these violations and observations. The tasks of presenting the lectures were represented by CMA’s staff:

- Mr. Mohammed Al-Delgaan - Supervision of Listed Companies Section Manager.

- Mr. Bader Al-Najdi - Senior Specialist in the On-site Supervision Department.

- Mr. Tareq Al-Toum - Specialist in the On-site Supervision Department.

The workshop addressed its topic through several aspects, which began by reviewing the observations noticed during on-site inspections related to Module Ten (Disclosure and Transparency) of the Executive Bylaws of the aforementioned law, and gave an example of some companies holding a Board meeting during trading hours, or its failure to include some entities in the list of insiders, or its failure to provide the CMA and the Securities Exchange with the changes that occur to the list of insiders within the specified period, or its failure to disclose significant events.

The workshop then moved on to review the observations related to Module Eleven (Dealing in Securities), and in particular, violations related to the valuation of local or foreign assets.

As for the violations and observations related to the provisions of Module Fifteen (Corporate Governance) of the Executive Bylaws of aforementioned law, they were the most frequent, and they were the last aspect of the workshop, where the most prominent of these observations were reviewed, especially those related to Board meetings, emergency meetings, and failure to maintain records according to an appropriate mechanism, in addition to notes related to the company’s policies and procedures, its work strategies and its annual plans, as well as the failure of some companies to establish a special policy for recognizing the rights of interests or not establishing a special unit for investor affairs or the unit established for that purpose not having the required independence, in addition to violations related to not updating the company’s shareholders’ data, or the lack of data related to the ongoing qualification required for board members or evaluating the performance of its members, and other related observations and violations. The workshop concluded after answering the participants’ inquiries and questions.

Ends-

Notes to Editors:
The Capital Markets Authority (CMA) of Kuwait was established pursuant to Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, and its amendments, approved by the Kuwaiti Parliament in February 2010. Under this Law, the CMA regulates and supervises securities activities, ensures transparency, fairness, efficiency, and observes listed companies’ implementation of Corporate Governance regulations. The CMA also protects investors from unfair practices and violations of the CMA's Law.
Furthermore, the Law stipulates the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs pertaining to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw