Title: Press Release: CMA Issues a Resolution that Aims to Amend Some Provisions of Module Fifteen of the Executive Bylaws of the CMA Law

Kuwait, December 22, 2024 - Within the framework of the Capital Markets Authority’s (CMA) continuous pursuit to develop the rules that regulate securities activities and its efforts to be in line with the latest developments of the capital markets, as well as the internationally recognized standards of securities activities, and after application and practice, comprehensive research and study, and comparison with the latest regional and international legislations and practices, and in continuation of the approach adopted by the CMA to contact and coordinate with the concerned parties and its keenness to understand the views and suggestions proposed by the investors and the related parties in the economic system of the Kuwaiti market,  the CMA has issued on Sunday December 22, 2024 Resolution No. (168) of 2024 that amends Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments. The amendments to the aforementioned resolution aimed mainly at achieving the Rules and Provisions of the Financial Integrity and Soundness Standards in the Member of the Board of Directors and Chief Executive Officer and the positions that directly report to him in the organizational structure of Unlicensed Listed Companies from the CMA as follows:

1.  Not have final judicial judgment shall have been issued against him that is detrimental to convicted of a crime involving a breach of honour or trust, or a crime related to money laundering, financing terrorism, capital markets crimes, or corruption crimes, unless he has been rehabilitated.
2. He must be of as a good reputation and conduct.
3.  He shall not have been previously dismissed from  his  position  or job by  a  disciplinary  decision  from  a  Regulatory Body or by a final judicial judgment.
4.  He shall not have been declared bankrupt, unless he has been rehabilitated or a decision has been issued to imprison him settled and no arrest order or for warrant to pay his debt owed. 
Applying the Rules and Provisions of the Financial Integrity and Soundness Standards to Members of the Board of Directors and Executive Management shall be from 01/01/2025.

Unlicensed Listed Companies shall be granted a transitional period to meet the requirements for the financial integrity and soundness standards for Board Members and Executive Management not later than 30/06/2025.

In accordance with Appendix 3 (Mechanism for Applying the Rules of Financial Integrity and Soundness Standards to Members of the Board of Directors of Unlicensed Listed Companies) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments.

These amendments are based on CMA’s continuous pursuit to develop the provisions of the Executive Bylaws with regards to the persons holding the position of Members of the Board of Directors and Executive Positions of Unlicensed Listed Companies.

In conclusion, the CMA invites all licensed persons and related parties to view the final version of the amendments and implement its provisions through visiting the following link:  www.cma.gov.kw. 

Ends-
Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance regulations, and protect investors from unfair practices which violate the CMA's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 1888898
Email: pr-media@cma.gov.kw