Procedures For Canceling The License For Securities Activities Upon The Request Of The ‎Licensee

What are the procedures for canceling the license for securities activities upon the request of the licensee to practice such activities in the State of Kuwait?

The answer to this question is given by the team of capital markets lawyers in RHR Law Firm in accordance with the executive regulations of the law No. 7 for the year of 2010 concerning the establishment of the Capital Markets Authority and regulation of Securities Activity.

The regulation allows a person licensed to engage in securities activities in Kuwait to apply to the Capital Markets Authority to have some or all of the licensed securities activities cancelled, as follows:

  1. The authorized person submits a request to cancel the license in accordance with the request form for cancelling securities activities contained in Appendix No. (7) of Book Five (Securities Activities and Registered Persons) of the Regulations, provided that the request is accompanied by all documents and information required from the Capital Markets Authority, and that

Details of the cancellation request form for the securities activities:

  • The name of the authorized person
  • License Number
  • Application Date
  • The proposed date of cancellation (at least three months before the date of application)
  • Activities to be revoked
  • Legal Form
  • Capital
  • The name of the contact person
  • Reasons to cancel the license

Statement of documents attached to the application:

  • Draft amendments to the Memorandum and Articles of Association (draught agenda of the Extraordinary General Assembly), if any
  • A report from a Capital Markets Authority-accredited auditor stating that the applicant does not engage in all securities activities or the activities that must be cancelled.
  • The Central Bank of Kuwait’s prior approval for the request to cancel the financing activity (if any).

Statement of documents required after obtaining the initial approval

  • Providing the Authority with a copy of the agenda for the extraordinary general assembly meeting to be considered before the Ministry of Commerce and Industry sets the date for the general assembly meeting.
  • Provide the Authority with a certified copy of the minutes of the extraordinary general assembly meeting, as well as evidence indicating the amendments to the memorandum of association and articles of association in the commercial registry, for consideration in order to complete the procedures for cancelling the license in question.
  1. If the Authority deems it necessary, it shall notify the person applying to cancel the license by providing any additional documents or information. If the applicant fails to submit the required documents and information within the time frame specified by the Authority in the notification, without an acceptable excuse, the application is considered null and void.
  2. After the authorized person amends the company’s contract by cancelling the purposes for which the license cancellation request is submitted, the Authority shall make a decision on the cancellation request of license within two months of receiving it, complete with all information and documents
  3. The Authority may compel the applicant to cancel the license to follow all procedures and measures to ensure that the interests of its Customers or the integrity of the financial system are not jeopardized as a result of the license cancellation.
  4. The Authority shall notify the applicant of the license cancellation application of its decision on this application. In the event of rejection, the decision must be justified.

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