CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (14-2026 Disciplinary Board) (18-2026 Authority) and imposition of a fine against: The Securities House Company, for Violating the rules of Conduct of Business and Financial Technologies

Announcement regarding issuance of Disciplinary Board Resolution No. (14-2026 Disciplinary Board) (18-2026 Authority) and imposition of a fine against: The Securities House Company, for Violating the rules of Conduct of Business and Financial Technologies

For the following reasons:

1. The provision of Articles (7-2), (7-4), and (7-5) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
2. The provision of Articles (3-5-1) and (3-5-2) of Module Nineteen (Financial Technologies) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the CMA upon reviewing the publications related to the results of the portfolios through which the Securities House Company practices the tasks of automated investment advisor service, in accordance with its registration in the register of Securities-Based Fintech Services at the CMA to Provide the automated investment advisor service, published on the Instagram platform on 1/2/2026 on the official accounts.

These publications were not limited to sharing information or facts objectively, but rather included promotional and marketing language. They contained information about investing in portfolios, including a presentation of their characteristics and investment advantages, along with the use of promotional phrases such as: "outperforms in returns," "outperforms many others," and "achieves advance performance compared to market indices."

Such phrases could be interpreted as encouraging or urging the public—directly or indirectly—to enter into an agreement or benefit from the advertised service, in accordance with the definition of Financial Promotion set forth in Module One (Glossary) of the aforementioned Executive Bylaws, which stipulates:

"An invitation or urging to enter into an agreement such that its conclusion or the fulfillment of its obligations by its parties constitutes a securities activity, or the exercise of any right arising from a security for the purpose of owning, dealing, guaranteeing, or transferring it."

Furthermore, upon reviewing these publications, it became clear that they did not explicitly state that these returns refer to the historical performance of these portfolios and cannot be relied upon for future portfolio results.

Additionally, these publications did not include the name of The Securities House Company, the licensed person to provide automated investment advisor services, as registered in the register of Securities-Based Fintech Services at the CMA to provide the service of automated investment advisor service.

The Resolution included the infliction of the following penalty: -
" Levying a Fine on The Securities House 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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