CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (54/2024 Disciplinary Board) (59/2024 Authority), and imposition of a fine against Kuwait Finance House for violating the rules of Collective Investment Schemes

Announcement regarding issuance of Disciplinary Board Resolution No. (54/2024 Disciplinary Board) (59/2024 Authority), and imposition of a fine against Kuwait Finance House for violating the rules of Collective Investment Schemes

For violating the provision of Articles77 and 139 of Law No. 7 of 2010 and Article 1-15 of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws, based on the fact that during September 2015, Ahli United Bank (which subsequently merged with Kuwait Finance House, transferring all rights and obligations to the merging company, i.e. Kuwait Finance House), marketed a collective investment scheme established outside the State of Kuwait without obtaining the required licenses from the Authority.

The Resolution included the infliction of the following penalty: -
“Levying a fine against Kuwait Finance House Company in an amount of KWD 50,000 (fifty thousand Dinars) for what was attributed to the Bank of marketing a foreign collective investment scheme without obtaining the required license from the Authority”.

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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