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Capital Markets Authority of Kuwait

09/20/2021 | Press release | Distributed by Public on 09/20/2021 23:19

Press Release: Invitation to Participate in the Opinion Poll of the Draft Provisions Regulating the Procedures of Delivering the Clients’ Funds and Assets in the Event of[...]

Title:Press Release: Invitation to Participate in the Opinion Poll of the Draft Provisions Regulating the Procedures of Delivering the Clients' Funds and Assets in the Event of Cancelling the License of the Licensed Person

Date Publish20 September 2021

Kuwait City, September 20,2021, In continuation of the efforts of the Capital Markets Authority (CMA) towards providing a supervisory and regulatory system that supports an attractive investment environment and competitiveness in the State of Kuwait that is based on the principle of justice, transparency, and integrity in line with the best international practices stimulating the practical application the requires the necessary updates. The CMA has prepared suggested developing amendments on the provisions of Module Five (Securities Activities and Registered Persons) and Module Seven (Clients' Funds and Clients' Assets). Such amendments included the procedures and responsibilities of the licensed persons in the event of the issuance of CMA's resolution regarding cancelling their license pursuant to Article (67) of Law No. 7 of 2010 regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its amendments. They also included amending the requirements of the licensed person's contract with his clients as a reflection of these procedures and responsibilities.

Moreover, the suggested amendments of the mentioned modules included the following aspects:

First:

The duties and responsibilities of the licensed person after the issuance of the resolution of cancelling the securities activities license by the CMA

1

Developing and determining the procedural stages of the general duties and procedures related to the termination of contracts and delivering the clients' funds and assets to them or any party relevant to holding, managing or safekeeping them.

2

Regulating the process of notifying the shareholders, clients, third parties, and those related to CMA's resolution.

3

Determining the duties of the person whose license is cancelled regarding the process of delivering the clients' funds and assets to them or any party relevant to holding, managing or safekeeping them.

4

Developing and determining the reports to be sent to the CMA regarding following up the process of delivering the clients' funds and assets to them or any party relevant to holding, managing or safekeeping them.

Second:

The duties and responsibilities of the Exchange, clearing agency, and the auditors registered in CMA's register

1

Activating the supporting role of each of the mentioned entity to ensure the soundness of supervising the procedures of the person whose license is cancelled regarding the process of delivering the clients' funds and assets to them or any party relevant to holding, managing or safekeeping them.

2

Introducing developing procedures and requirements for the rules and systems of the Exchange and the clearing agency.

Third:

Updating the minimum limit of the contractual requirements between the licensed person and his clients as well as the policies and operational procedures of the activities of the Collective Investment Scheme Manager and the Custodian

1

The addition of determining the procedures of the contract's termination and the mechanism of delivering the clients' funds and assets to them or any party relevant to holding, managing or safekeeping them in the contract signed with the client.

2

Updating the status of the companies authorized to manage the client's investments outside the State of Kuwait.

3

The addition of determining the procedures of delivering the clients' funds and assets to them or any party relevant to holding, managing or safekeeping them in the event of the licensed person' contract with external companies to manage the investments of the client outside the State of Kuwait.

4

Updating the policies and operational procedures of the licensed person by adding a detailed guide for the procedures taken by him in the event of cancelling the securities activities license by the CMA.

In conclusion, the CMA works continuously on developing the provisions of the Executive Bylaws guided by the best rules, standards, and practices that aim to provide the investors protection. It also emphasizes on the importance of participating in the opinion poll of the mentioned amendments and invites the persons of visions and interests in particular. Moreover, it welcomes all the suggestions that may upgrade the securities activities in no later than Wednesday 20/10/2021.

To participate in the opinion poll:

The website of the opinion poll:

https://www.cma.gov.kw/ar/web/cma/surveycompany

Scan here to enter the website:

Ends-

Notes to Editors:

The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies' execution of Corporate Governance regulations, and protect investors from unfair practices which violate the CMA's Law.

Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.

For further information, please contact:

Public Relations & Media Office

Tel: 22903062

Fax: 22903505

Email: [email protected]

Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.