CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (13-2026 Disciplinary Board) (07-2026 Authority) and imposition of a fine against: 1- International Financial Advisors Holding Company (IFA). 2- Chairman of the Board of Directors. 3- Member of the Board of Directors (2 Members). 4- Executive Vice President, for violating the Rules of Corporate Governance.

Announcement regarding issuance of Disciplinary Board Resolution No. (13-2026 Disciplinary Board) (07-2026 Authority) and imposition of a fine against: 1- International Financial Advisors Holding Company (IFA). 2- Chairman of the Board of Directors. 3- Member of the Board of Directors (2 Members). 4- Executive Vice President, for violating the Rules of Corporate Governance.

For the following reasons:
1) International Financial Advisors Holding Company (IFA) violated the provision of Article (1-14) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It was proven through reviewing the periodical financial statements of International Financial Advisors Holding Company ending on 30/09/2025 that the Company failed to implement the International Accounting Standard No. (9) “Financial Instruments”, as it failed to build up provisions for financial dues on a (related party) in the amount of KWD 14,646,756 (fourteen million, six hundred and forty-six thousand, and seven hundred and fifty-six Kuwaiti Dinars only), which has been listed under “Receivables from related parties” in accordance with the requirements of the standard, despite their maturity since 2015 with the higher risk of not collecting it over the years.

Second: Each of the following:
1. Chairman of the Board of Directors of the International Financial Advisors Holding Company.
2. Member of the Board of Directors of the International Financial Advisors Holding Company.  
3. Member of the Board of Directors of the International Financial Advisors Holding Company.

This is due to their violation of the provision of Item (5) of Article (3-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as they failed to perform their role of ensuring the Company’s compliance with the provision of Article (1-14) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It was also proven to the CMA through reviewing the periodical financial statements of International Financial Advisors Holding Company ending on 30/09/2025 that the Company failed to implement the International Accounting Standard No. (9) “Financial Instruments”, as it failed to build up provisions for financial dues on a (related party) in the amount of KWD 14,646,756 (fourteen million, six hundred and sixty-four thousand, and seven hundred and fifty-six Kuwaiti Dinars only), which has been listed under “Receivables from related parties” in accordance with the requirements of the standard, despite their maturity since 2015 with the higher risk of not collecting it over the years.

Third: Executive Vice President of International Financial Advisors Holding Company, for violating the following:

1- The provision of Item (4) of Article (3-10) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.

2- The provision of Article (5-2) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.

As he did not perform the executive role assigned to him in ensuring the Company’s compliance with the provision of Article (1-14) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It was also proven through reviewing the periodical financial statements of International Financial Advisors Holding Company ending on 30/09/2025 that the Company failed to implement the International Accounting Standard No. (9) “Financial Instruments”, as it failed to build up provisions for financial dues on a (related party) in the amount of KWD 14,646,756 (fourteen million, six hundred and sixty-four thousand, and seven hundred and fifty-six Kuwaiti Dinars only), which has been listed under “Receivables from related parties” in accordance with the requirements of the standard, despite their maturity since 2015 with the higher risk of not collecting it over the years.

The Resolution included the infliction of the following penalty: -
“First: Levying a fine on International Financial Advisors Holding Company (IFA) in an amount of KWD 20,000 (twenty thousand Dinars) for the attributed violation.

Second: Levying a fine on each of the following:
1. Chairman of the Board of Directors of the International Financial Advisors Holding Company.
2. Member of the Board of Directors of the International Financial Advisors Holding Company. 
3. Executive Vice President of the International Financial Advisors Holding Company.

in an amount of KWD 10,000 (ten thousand Dinars) on each one of them for the attributed violation.

Third: Levying a fine on a Member of the Board of Directors of International Financial Advisors Holding Company in an amount of KWD 5,000 (five 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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