CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (45/2025 Disciplinary Board) (88/2025 Authority) and imposition of a fine against: First Investment Company for violating the Rules of Disclosure and Transparency.

Announcement regarding issuance of Disciplinary Board Resolution No. (45/2025 Disciplinary Board) (88/2025 Authority) and imposition of a fine against: First Investment Company for violating the Rules of Disclosure and Transparency.

For the following reasons:
 

Violation of the provision of Article (4-6-3) of Module Ten (Disclosure and Transparency) 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. It was proven to the CMA after reviewing the Company’s disclosure in Boursa Kuwait Securities Exchange on 16 September 2025, regarding its response to news circulated on social media on 15 September 2025, concerning the debt settlement of First Investment Company with other parties.

The response was misleading and did not reflect the real material information. The Company had previously denied the news published on social media on 16 September 2025. However, on 29 September 2025, it disclosed on the Boursa Kuwait Securities Exchange that it had signed a settlement agreement with the same parties and for the same debt amount published on social media which was previously denied in its disclosure on 16 September 2025. This was done without clarifying or confirming the existence of negotiations with these parties or indicating the possibility of reaching a settlement in its initial disclosure. Therefore, it is clear that the Company's disclosure was misleading, as it denied the circulated news and then disclosed the signing of the settlement agreement.

The Resolution included the infliction of the following penalty: -
“Levying a fine on First Investment Company in the amount of KWD 10,000 (ten thousand Dinars) for the attributed violation”.

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.

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