The Capital Markets Authority (CMA) has issued Disciplinary Board Resolution No. (64/2023 Disciplinary Board) (85/2023 Authority), imposing a financial penalty of KD 1,000 on KFIC Financial Brokerage Company for two violations. The violations are as follows: 

1. Violation of the provisions of paragraph (a) of item (2) of Article (1-27) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010 and its amendments. The violation occurred when an employee of KFIC Financial Brokerage Company, registered with the CMA as a representative of the securities broker activity, provided advice to clients. The employee urged a client to wait for changes in the share price of a security before making a buying or selling decision. Also, the employee engaged in discussions beyond their assigned role, which is solely receiving and processing customer orders. The formal provision of advice requires the necessary licenses from the Authority, such as the investment advisor license. 

2. Violation of item (3) of Article (6-8) of Module Eight (Work Ethics) of the Executive Bylaws of Law No. 7 of 2010 and its amendments. It has been demonstrated to the CMA that a broker, employed by KFIC Financial Brokerage Company and registered with the CMA as a representative of the broker activity, failed to record the duration and date of an order during a client's phone call. 

The Financial Brokerage Company has been fined KD 1,000 for these violations by the Capital Markets Authority.