The Kuwait Capital Markets Authority has issued a Disciplinary Board decision imposing financial penalties on Kuwait and Middle East Financial Investment Company (KMEFIC) and several senior individuals, citing breaches of business ethics and corporate governance requirements. KMEFIC was fined KD 5,000 after the CMA found its telephone call recording system included a function allowing customer orders to be deleted, contrary to record-keeping standards for receiving and retaining customer orders. The chairman of the board was fined KD 5,000 for failing to oversee executive management’s compliance with internal policies and procedures, particularly the financial management policy, and for inadequate follow-up on implementation of a board decision (No. 13/2022 dated 02/08/2022) establishing an investment portfolio under the company’s management. Three board members in their capacities on the audit committee were fined KD 8,000 each for failures in audit committee oversight, including deficiencies in ensuring internal audit effectiveness and in ensuring compliance with the financial management policy and the board’s portfolio decision, against a backdrop of buy and sell orders executed without required approvals from the authorised bodies (the executive director or the investment committee). The former chief executive officer was fined KD 10,000 for not complying with internal policies and not ensuring implementation of the board decision, while the senior manager of the financial department was fined KD 2,000 for non-compliance with the company’s internal policies, particularly the financial management policy.

Original source View in tracker