The Kuwait Capital Markets Authority’s Disciplinary Board issued a resolution imposing a KD 10,000 financial penalty on Kuwait and Middle East Financial Investment Company (KMEFIC) for repeatedly failing to comply with the capital adequacy instructions for licensed persons, and requiring the firm to adjust its qualified regulatory capital to meet capital requirements. The violation relates to Article 3-1 of Module Seventeen (Capital Adequacy Instructions for Licensed Persons) of the Executive Bylaws of Law No. 7 of 2010 (as amended). The Authority cited capital adequacy ratios of 24.4% as at 31 December 2024 and 32% as at 31 March 2025, against a requirement for continuous 100% compliance, and directed the firm to increase qualified regulatory capital to at least 100% of risk-based capital requirements.
Kuwait Capital Markets Authority 2025-10-13
Kuwait Capital Markets Authority fines Kuwait and Middle East Financial Investment Company KD 10,000 for repeated capital adequacy breaches
The Kuwait Capital Markets Authority’s Disciplinary Board fined Kuwait and Middle East Financial Investment Company KD 10,000 for non-compliance with capital adequacy instructions. The firm failed to maintain the required 100% capital adequacy ratio, reporting 24.4% and 32% for December 2024 and March 2025, respectively. The Authority mandated the firm to adjust its regulatory capital to meet the 100% requirement.