If you were one of the authorized persons to work in security activities management as the investment portfolio manager or collective investment system manager or market maker or stock broker…to what soever of security activities in Kuwait State, we offer you in this article the cases which the Money markets authority is permitted to cancel or suspend or restrict the license of security activities practice.

Firstly: Actions that lead to rejection or suspension or cancellation or restriction of license of security activity practice

The Money markets authority establishing regulation law has granted the right for Money markets authority to reject, or suspend, or cancel a license, or restrict of activity to any person who is authorized to work in security activity management, or any related party affiliated to him if it is proven to it doing such of the following deeds:

• Doing a grave mistake, or giving misleading information, or omitting mentioning a basic fact, while submitting the authorization request belongs to him, or omitting mentioning any other information should be presented to Money markets authority.
• Unfulfilling of criterions implemented by law provisions or any system or regulation issued accordingly.
• Breaking any verdict, or rule, or system, or regulation, or decision issued by the law or security law or based on other country regulation.
• Neglecting of censorship of one of his followers to forbid him from everything may infringe law rules or the regulation of Money markets authority establishing law.

Also, the authority issues a reasoned decision of suspending or cancelling license or restricting the authorized person’s activities, this decision takes effect from the date of its publishing or announcing the authorized person about it.

And the authority has the right to make any investigation or to take any action against the authorized person or any other person whom related to any infringement may had occurred before the date of the authority decision of cancelling or suspending or restricting the activity.

Actions To Be Taken When Cancelling the License or Restricting the Authorized Person’s Activities

The regulation of Money markets establishing law required in the case of suspension or restriction of the authorized person’s activities to take the following actions:

• The authorized person is required to take over developing a plan to address the causes of restriction or suspension and present it for the Money markets authority provided that it includes the following:

– Legal opinion from the office of external legal counsel for the company about cases or group of cases that have a material impact on the financial position of the company whether they are brought from it or against it and its subsidiary companies, and the amounts of those cases if it could be estimated.

– Declaration and pledge of the Chairman of the Board of Directors or his representative to abide by the controls which is determined by regulation and non-recurrence of the infringement by the authorized person, and any other pledges determined by the Money markets authority.

• The authority decides in resuming the activity of the suspended or restricted authorized person through two months from the date of receiving the plan, within all met, required information and documents.
• The authority announces the authorized person about its decision by accepting or rejecting the plan.

In the case of approval of the Money market authority on the plan, the authority emits a decision of resuming practicing of the authorized person’s activity which was subjected to suspension or restriction.

Also, the grievance against the decision of the authority in front of the committee of receiving complaints and grievances from stakeholders should be through fifteen days from the date of announcing the stakeholders of the decision or its publishment in the official newspaper or the website of the authority and proof of their knowledge about it with certainty, besides it is allowed for stakeholders to directly challenge the authority decisions in front of the competent court through sixty days from the date of announcing the stakeholders about the decision or its publishment in the official newspaper or the website of the authority and proof of their knowledge about it with certainty.

If you are looking for a Kuwaiti law firm that specializes in providing legal services to the securities, capital and stock market activities, you can count on us at Taqneen, Law Firm and Legal Consultations.

To book an appointment or request legal advice about the duties of securities companies in the optimal implementation of clients’ orders, we are pleased to receive your inquiries at (info@Taqneen.com).