The Kuwait Capital Markets Authority’s Disciplinary Board issued a resolution imposing financial penalties on Gulf Bank for breaches of the rules on securities activities and registered persons, and the rules of business ethics. The Board imposed a fine of KD 10,000 for each of two violations. The Authority found that the bank repeatedly failed to submit subscription or subscription and redemption applications in securities through employees registered with the CMA as representatives for the activity of an underwriting agent, and instead submitted such applications through employees not registered as agent activity representatives in relation to subscription and redemption requests in investment funds managed by Financial Centre Company under a sales agent agreement. Separately, it found the bank did not properly retain recordings of a number of customer telephone conversations related to orders, and that the phone recording system had a feature enabling deletion of recorded customer instructions.
Kuwait Capital Markets Authority 2025-10-13
Kuwait Capital Markets Authority fines Gulf Bank KD 20,000 for registered representative and call recording breaches
The Kuwait Capital Markets Authority's Disciplinary Board fined Gulf Bank KD 20,000 for breaches related to securities activities and business ethics. Violations included improper submission of securities applications and inadequate retention of customer phone recordings, with a system feature allowing deletion of recorded instructions.