The Capital Markets Authority (CMA) announced on its website that the Disciplinary Board issued Resolution No. (113/2021 Disciplinary Board) (73/2021 Authority) and imposed a fine of KWD 12,000 against Securities Group Company for violating the rules of Clients’ Funds and Clients’ Assets and the provisions of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments.

For the following reasons:

1- Provision of Item (5) of Article (5-2-1) of Module Seventeen (Clients’ Funds and Clients’ Assets) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. The Company did not comply with the provision of Item (5) of the mentioned Article.

2- Provision of Article (2-8) of Module Sixteen.

3- Provisions of Items (1) and (4) of Article (3-8) of Module Sixteen.

4- Provision of Item (2) of Article (3-19) of Module Sixteen.

5- Provision of Article (3-38) of Module Sixteen.

6- Provision of Articles (18 and 23) of the Ministerial Resolution No. (35) of 2019.

The violations of Items (2, 3, 4, 5 and 6) are procedural and not substantive.

The Resolution included the infliction of the following penalty: -

“Securities Group Company is fined KWD 2,000 for each of the attributed violations.”
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 rules 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.