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Title: Announcement regarding issuance of Disciplinary Board Resolution No. (37/2025 Disciplinary Board) (81/2025 Authority) and imposition of a fine against: Kuwait and Middle East Financial Investment Company (KMEFIC) for violating the Rules of Capital Adequacy Regulations for Licensed Persons.
Date Publish
10 November 2025
Announcement regarding issuance of Disciplinary Board Resolution No. (37/2025 Disciplinary Board) (81/2025 Authority) and imposition of a fine against: Kuwait and Middle East Financial Investment Company (KMEFIC) for violating the Rules of Capital Adequacy Regulations for Licensed Persons.
For the following reasons:
Violation of the provision of Article (3-1) of Module Seventeen (Capital Adequacy Regulations for Licensed Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It was proven to the CMA that the Company did not comply with the provisions of Module Seventeen (Capital Adequacy Regulations for Licensed Persons), as the capital adequacy percentage of the mentioned company was 32.48% according to the capital adequacy report for the period that ended on 30/6/2025, while the compliance percentage shall be 100% on an ongoing basis, noting that the Company continued its non-compliance with the minimum required regulatory capital since the end of 31/12/2022 to this date.
The Resolution included the infliction of the following penalty: -
“Levying a fine on Kuwait and Middle East Financial Investment Company (KMEFIC) in an amount of KWD 20,000 (twenty thousand Dinars) for the attributed violation, with the necessity to treat the eligible regulatory capital of the Company to achieve 100% or more of the risk-based capital requirement.”
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.
Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.
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