The Kuwait Capital Markets Authority issued Disciplinary Board Resolution No. 60/2024 (Authority No. 74/2024), imposing a KWD 10,000 fine on The Securities House Company for violations of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and its amendments. The findings covered repeated failures to reassess the risks of all financial brokerage clients in line with the firm’s approved procedures (Item 6 of Article 2-3), to collect and provide correct and complete information on some clients and their financial status (Article 3-4), and to comply with requirements for verifying lists under Article 6-1. The Authority also found the company repeatedly relied on a third party for verification contrary to its own procedures, and that the third party did not verify whether any clients were included in the relevant lists, pointing to inadequate policies and procedures for this client type. The fine was imposed for the attributed violations due to correlation.
Kuwait Capital Markets Authority 2025-02-10
Kuwait Capital Markets Authority fines The Securities House Company KWD 10,000 for breaches of brokerage client risk and information requirements
The Kuwait Capital Markets Authority fined The Securities House Company KWD 10,000 for breaching Module Sixteen of the Executive Bylaws of Law No. 7 of 2010. Violations included failing to reassess client risks, incomplete client information, and non-compliance with verification requirements. The company also improperly relied on a third party for client verification, highlighting inadequate internal policies.