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Capital Market Authority ends 3rd phase of awareness workshop


KUWAIT: The Capital Market Authority (CMA) has finalized third phase of its awareness workshop designed to promote its executive by-laws, in effect since November 10th. The CMA in a statement issued yesterday, shedding extensive light on the activity, said the first phase addressed allowed proportions of sales and purchase by the “party in control at the listed companies,” defining the “control theme” as “any concord, placing stock ownership, individual or of affiliate or aligned parties, exceeding 40 percent.”

It also tackled rules governing the proportion, mechanisms related to ceiling of sell-offs or purchases, durations, revelations’ terms for traded shares through affiliate companies or the aligned parties as well as the percentage left for the “controller entitled to sell or buy within six months. ” The first phase deliberations also delved into other trades’ mechanisms in details.

As to the second workshop, it tackled general regulations regarding revelations, transparency terms for the listed companies, rules for the board meetings during trading and mechanisms of posting information on the internet.

The third one dealt with interests’ disclosure, voting with respect of the shares in investment portfolios or e-accounts, regulations of securities’ transactions and times for banning operations, subscription floatation and other terms governing securities, conditions for enlisting and various forms of investment in the bourse. The Authority has affirmed that enactment of its bylaws constitutes a major event at the local finance market.

It had reported that the campaign included a workshop that tackled clients’ funds and assets, matching records with accounts, defining measures in defaulting cases, with emphasis that only permitted persons are allowed to manage investment portfolios.

The awareness workshop also addressed terms of contracts and accords between the client and the licensed individual, type and objective of the portfolio and limits of jurisdictions granted to the permitted agent. Other issues that were examined were fees and commissions, work ethics, types of clients-regular or professional-measures to trim conflicts of interest, recording phone contacts, deals, electronic messages, among the employees, agents and clients.

The workshop also dealt with provisions governing compulsory acquisitions, duration for assembling stocks and rules for voluntary acquisitions. The CMA campaign will proceed till December 22nd. The campaign for promoting the new laws is carried out through SMSs and other communication means. It promotes legal and regulatory rules for supervision, reporting and investigating irregularities, adjudication, complaints’ examination, forms of protests and investigation mechanisms.

The regulations, as promoted in the campaign, deal with licensing, assets’ evaluation and capital requirements in some activities. They also cover subjects such as definition of the ‘market maker,’ and role of the authority and the market in this regard. – KUNA

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