Title: Resolution No. (146) of 2024 Regarding Continuing the Restriction of the Securities Activities License of First Investment Company

Having Perused:
- Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, its Executive Bylaws, and amendments thereto, and
-  Law No. 71 of 2020 Regarding the Issuance of Bankruptcy Law, its Executive Bylaws, and amendments thereto, and
- Resolution No. (83) of 2024 Regarding the Restriction of the Securities Activities License of First Investment Company issued on 27/06/2024, and
- The securities activities license certificate for First Investment Company No. (AP/2015/0008) issued on 08/03/2024, and
- Based on the approval of First Investment Company’s Board of Directors on 26/09/2024 on the application to initiate the procedures of restructuring the Company’s assets pursuant to Law No. 71 of 2020 Regarding the Issuance of Bankruptcy Law, and
- Based on CMA Board of Commissioners Resolution passed in its meeting No. (34) of 2024 held on 23/10/2024. 

The Following Was Resolved:
Article (1)
Resolution No. (83) of 2024 Regarding the Restriction of the Securities Activities License of First Investment Company issued on 27/06/2024 is hereby cancelled as of 17/09/2024 due to the issuance of the Court of appeal’s judgement rejecting  the request for preventive settlement and restructuring submitted by the Company mentioned in the Resolution.

Article (2)
The following securities activities of First Investment Company shall remain restricted:
- Investment Portfolio Manager.
- Custodian.
- Collective Investment Scheme Manager.
- Subscription Agent.

Effective from 17/09/2024 until the issuance of a final resolution by the bankruptcy judge approving or rejecting the request to initiate preventative settlement or restructuring procedures pursuant to Law No. 71 of 2020 Regarding the Issuance of Bankruptcy Law, and upon notifying us with the measures taken by the Company regarding the asset restructuring plan.

Article (3)
The Company’s duties are limited to continuing the management and custody of the current funds and assets of clients. The Company is prohibited from accepting the management and custody of new clients’ fund and assets. In all cases, the approval of the CMA Board of Commissioners shall be obtained prior to agreeing to accept the management and custody of new clients’ fund and assets.

Article (4)
First Investment Company shall set procedures to ensure the ability of the current clients to recover their funds and assets from the licensed person upon their request.

Article (5)
The Company shall provide the CMA with a monthly report on the measures taken by the licensed person to comply with the requirements of the Bankruptcy Law and its Executive Bylaws.

Article (6)
The Company shall disclose this Resolution at Boursa Kuwait immediately upon its issuance in implementation of the provisions of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and amendments thereto. 

Article (7)
The Company shall prepare a plan to address the reasons for restriction of the activity and submit it to the CMA as set forth in Article (1-14-1) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and amendments thereto. 

Article (8)
The Company shall meet all legal obligations set by Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, its Executive Bylaws, and amendments thereto.

Article (9)
The concerned bodies shall execute this Resolution, each within its jurisdiction. This Resolution shall come into force as of 17/09/2024, and it shall be published in the Official Gazette.

Prof. Ahad Al-Melhem
Issued on: 29/10/2024.

Copy of the Official Document