Title: Announcement regarding issuance of Disciplinary Board Resolution No. (60/2024 Disciplinary Board) (74/2024 Authority) and imposition of a fine against: The Securities House Company for violating the Provisions of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their Amendments

Announcement regarding issuance of Disciplinary Board Resolution No. (60/2024 Disciplinary Board) (74/2024 Authority) and imposition of a fine against: The Securities House Company for violating the Provisions of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their Amendments

For the following reasons:
1. Violating the provision of Item (6) of Article (2-3):
After examining a sample of selected clients, the Authority found that the Company did not assess the risks of all financial brokerage activity clients repeatedly, in line with the Company’s approved procedures.

2. Violating the provision of Article (3-4):
The Authority found that the Company failed to gather and provide correct and complete information related to some clients and their financial status repeatedly.

3. Violating the provision of Article (6-1):
The Authority’s review of the Company’s policies and procedures manual, in addition to the documents related to financial brokerage clients, revealed that the Company repeatedly relied on a third party to verify the lists, conflicting to its approved procedures. It also became clear that the third party did not verify whether any of these clients were included in the lists, indicating the Company’s failure to establish appropriate policies and procedures to ensure compliance with the requirements stipulated in the aforementioned article regarding this type of clients.

The Resolution included the infliction of the following penalty: -
“First: Levying a fine against The Securities House Company in the amount of KWD 10,000 (ten thousand Dinars) for the attributed violations due to correlation”.

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.