Title: Announcement regarding issuance of Disciplinary Board Resolution No. (09/2024 Disciplinary Board) – (137/2023 Authority) and imposition of a fine against: 1- Securities Group Company for violating the rules of Module Sixteen, 2- Chairman and Members of the Audit Committee for violating the rules of Corporate Governance.

Announcement regarding issuance of Disciplinary Board Resolution No. (09/2024 Disciplinary Board) – (137/2023 Authority) and imposition of a fine against: 1- Securities Group Company for violating the rules of Module Sixteen, 2- Chairman and Members of the Audit Committee for violating the rules of Corporate Governance.

For the following reasons:
First: Securities Group Company violated the following:
1) The provision of Article (2-2).
2) The provisions of Items (3), (5), (6), and (8) of Article (2-3).
3) The provision of Article (3-5) amended by Article (3-4).
4) The provision of Article (3-16) amended by Article (3-15).
5) The provision of Article (3-20) amended by Article (3-19).
6) The provision of Article (3-38) amended by Article (3-37).
7) The provision of Article (6-1).

Noting that these violations are procedural and not substantive.

Second: Members of the Audit Committee at Securities Group Company:
1- Chairman of the Committee.
2- Member of the Committee.
3- Member of the Committee.

They violated the provision of Item (11) of Article (5-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the CMA that the Audit Committee of the Company continued its non-compliance with the mentioned Item. The Company was requested through Item (24) of the initial requirements of the On-Site Inspection Team to provide the following: “All the minutes of meeting of your audit committees, in which the inspection results letters and Disciplinary Board resolutions issued against the Company (if any) were discussed”; however, the Company only submitted 2 minutes of meetings: No. (3/2023) on 29/05/2023 and No. (4/2023) on 04/06/2023, which did not address any inspection results letters or  Disciplinary Board resolutions issued against the Company.

The Resolution included the infliction of the following penalty: -
“First: Levying a fine on Equipment Holding Company in an amount of KWD 2000 (two thousand Dinars) for the two attributed violation.

Second: Levying a fine on each of:
1- Chairman of the Audit Committee of the Securities Group Company.
2- Member of the Audit Committee of the Securities Group Company.
3- Member of the Audit Committee of the Securities Group Company.

an amount of KWD 5000 (five thousand Dinars) for each of them for the attributed violation.”

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 Laws 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.