The Capital Markets Authority issued Disciplinary Board Resolution No. (2022/71 Disciplinary Board) (2022/72 Authority) imposing a fine against Securities Group Company for violating the rules of clients’ funds and assets. The resolution included imposing a KWD 2,000 fine for each violation committed the by the Company, as follows: First: Violating the provision of Article (2-3) of the Module Seven (Clients’ Funds and Clients’ Assets) of the Executive Regulations of Law No. 7 of 2010 and their amendments, as the Company listed shares in limited liability companies as components of clients’ portfolios despite the fact that those accounts were registered in Securities Group’s name. This contradicts with the segregation rules that should apply to keep the assets of the Licensed Person and the clients in sperate accounts. Second: Violating the provision of Clause (4) of Article (3-2-5) of Module Seven (Clients’ Funds and Clients’ Assets) of the Executive Regulations of Law No. 7 of 2010 and their amendments as the Company transferred the amount available in portfolio No. (2692-1) of a deceased client to another account (the representative of the heirs) not to each heir’s separate account. 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 practices.