Title: Press Release: The Role of a Subscription Agent in Securities-Based Crowdfunding Spotlighted in Specialized Virtual Awareness Workshop by the CMA

Kuwait, September 30, 2024 – In continuation of the Capital Markets Authority’s (CMA) efforts in raising awareness of its audience and the persons concerned with its tasks and securities activities in general, and its efforts relevant to the latest directions and initiatives in particular, especially those related to financial technologies, their regulations, and the services provided within their framework, in accordance with Module Nineteen (Financial Technologies) of the Executive Bylaws of CMA’ establishment Law, enforced as of the second of January of this year and coincided with the initiation of the initial implementation phase of the same Module launched based on Resolution No. (181) of 2023 issued on 28/12/2023 and will end on July 1, 2025. The initial implementation phase aims to regulate financial technologies services, implement Module Nineteen gradually, provide legislative flexibility, apply the necessary protection to the services providers and clients, and raise the efficiency and effectiveness of the supervisory framework.

The CMA has proactively taken steps  ahead of  the implementation date of Module Nineteen (Financial Technologies) and the launch of the initial implementation phase and supplemented it with several awareness efforts that varied between awareness publications, awareness messages published through CMA’s social media accounts, allocating a section for financial technologies on the CMA’s website which included all the activities and awareness products related to the subject, and implemented a series of awareness workshops, one of which is this workshop.

This workshop, held virtually on September 30, 2024 as part of CMA’s national project for enhancing financial inclusion and investment awareness, targeted the persons licensed to practice the activity of subscription agent. It was presented by each of:

- Ms. Zahra Almousa – Manager of Financial Technologies Unit.
- Mr. Abdullah Alshamri – Senior Analyst at the Financial Technologies Unit.
- Altaf AlFaraj – Analyst at the Financial Technologies Unit.

The workshop focused on the  “Role of Subscription Agents in Securities-Based Crowdfunding” covering various aspects. It began with an overview of  securities-based crowdfunding as regulated by the provisions of Module Nineteen (Financial Technologies), defining key  terms relevant to the service. The discussion also touched on the CMA’s provisions that regulate the relationship between all parties involved in this service, including the CMA-registered crowdfunding platform , the subscription agent responsible for managing the offer, the offer issuers, and all subscribers from investors.

“The Role of a Subscription Agent” received significant attention in the workshop. The presenters discussed in detail the subscription agent’s role and responsibilities in some operational activities of the registered crowdfunding platform, such as managing the offer, regulating the subscription in securities offered on the registered crowdfunding platform, qualifying investors, and the provisions and procedures of practicing his tasks in accordance with two forms approved by the CMA, whether under the indirect  form through the establishment of a special purpose vehicle company, or under the direct form without the establishment of a special purpose vehicle company.

Before concluding the workshop, the presenters addressed the participants’ enquiries and questions regarding the subscription agent’s task related to securities-based crowdfunding in particular and those related to various aspects of the service in general.

Finally, the Capital Markets Authority invites all persons interested and concerned with financial services offered through financial technologies to communicate with it through the Financial Technologies Unit, which in fact enhances the opportunities of successful implementation of the regulatory framework of financial technologies.

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