Initial implementation phase
The Capital Markets Authority issued Resolution No. (181) of (2023) on 28/12/2023 announcing the launch of the initial implementation phase of Module Nineteen (Financial Technologies) of the Executive Bylaws of Law No. 7 of 2010 and their amendmends, which comprises of a gradual implementation of the regulatory framework of the financial technology services that are governed by the Capita Markets Authority through Module 19 (Financial Technologies) of the Executive Bylaws of Law No. 7 of 2010 and their amendmends.
To view the resolution: https://www.cma.gov.kw/en/web/cma/cma-board-releases/resolutions-and-regulations/-/cmaboardreleases/detail/1443370
Initial Implementation Phase Timeframe
The initial implementation phase will span one and a half years, from January 2, 2024, to July 1, 2025. It will be divided into three distinct sub-phases:
1) Application Period: This period runs from January 2, 2024, to July 1, 2024. During this time, interested parties can submit their applications to participate.
2) Practice Period: This period begins upon the Capital Markets Authority's (CMA) approval of an applicant.
3) Evaluation Period: This period starts at the conclusion of the initial implementation phase on July 1, 2025. It will involve a comprehensive evaluation of the framework's effectiveness in serving the vital sector and empowering client protection. Based on the findings, improvements will be made to the framework.
Legestlative Flexbility
The initial implementation phase offers several unique characterestics including legistlative flexibility, without compromising the necessary protection for the service providers and clients, ultimately aiming to improve the supervisory framework's efficiency and effectiveness. Legistlative flexibility is administered through the adoption of the “Comply or Explain” principle, which is applied on certain provisions of the previously mentioned Module that are determined in CMA’s Resolution (181) of 2023.
Regularization
The initial implementation phase includes a transition period for persons who provide any of the digital financial services for their clients before the issuance of Module Nineteen (Financial Technologies). This period, running from January 2, 2024, to July 1, 2024, allows providers to regularize their status according to the module's requirements and provisions without interrupting their service delivery.
Application Submission Process to Provide Finacial Technology Services Within the Initial Implementation Phase
For the persons who wish to provide financial technology services and for those who are subject to the transition period must ensure compliance with all conditions and requirements outlined in Module 19 (Financial Technologies). They must complete the designated form for registering a crowdfunding platform in the financial technologies register, or the designated form for requesting a license to provide Digital Financial Advisory services. All forms, along with all necessary documents, shall be submitted to the CMA's General Register via the designated email address:
GR@cma.gov.kw
