Powers Of The Clearing Agency To Impose Sanctions

Is it permissible for the clearing agency to impose penalties on any of its members in the event of its non-compliance with the rules of the clearing agency?

The answer to this question is explained by the team of capital and stock market lawyers in the Al-Rashed, Al-Hadlaq and Al-Roudan Group for Law Firm and Legal Consultations, according to the rules of the Kuwait Clearing Company.

It is stated in the rules of the Kuwait Clearing Company that the clearing agency can take action against any of its members according to the following:

  • Notifying the Stock Exchange to suspend one of the clearing members.
  • Limiting the clearing member’s activities or its access to the clearing services and facilities.
  • Imposing non-compliance fees on the clearing member or imposing any other penalties on it.
  • The clearing company shall immediately notify the Capital Markets Authority and the clearing member in writing of any suspension or limitation imposed, in addition to the period of the suspension or limitation, if any, or any penalty or fine (and the amount specified therein) imposed on the clearing member.

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).