Kuwait CMA Rules & Regulations flashcards
Kuwait CMA Rules & Regulations · Build recall with a focused review session.
33 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Capital Markets Authority (CMA)
- The independent Kuwaiti regulator established under Law No. 7 of 2010 to regulate securities activities, collective investment schemes and market participants and to protect investors.
- Executive Bylaws
- The detailed rulebooks issued by the CMA Board under the Law, divided into books covering scope, securities activities, funds, market conduct, disclosure, takeovers and AML obligations.
- IOSCO principles
- International standards for securities regulation that the CMA may reference where domestic rules are silent, guiding investor protection, transparency and market integrity.
- Fit and proper test
- The CMA assessment of honesty, integrity, competence and financial soundness of proposed shareholders, directors and senior managers before licensing or approving appointments.
- Securities activities licence
- CMA authorisation required to deal, manage portfolios or funds, act as custodian, arrange transactions, or provide investment advice and research in Kuwait.
- Qualifying shareholding change
- An acquisition or disposal of a significant stake in a licensed firm that requires prior CMA approval because it may change control or influence over the licensee.
- Prospectus approval
- The CMA's review and clearance of an offer document before any public marketing of securities may begin in Kuwait.
- Prospectus supplement
- An update to an approved prospectus required when a material change or significant new matter arises before the offer closes, keeping disclosure accurate.
- Private placement exemption
- A limited offering to a restricted group of sophisticated or professional investors that may proceed without a full public prospectus if the Executive Bylaws conditions are met.
- Collective investment scheme
- A fund pooling investor money for collective management under a defined investment policy, requiring CMA approval of its documents before being established or marketed.
- Fund custodian
- An independent entity holding fund assets and performing safekeeping and oversight duties, segregated from the fund manager to protect unitholders.
- Net asset value (NAV)
- The fund's assets minus liabilities divided by units outstanding, calculated at the frequency stated in the fund documents using the approved valuation policy.
- Inside information
- Information not generally available about an issuer or its securities that, if published, would likely significantly affect the security's price.
- Market manipulation
- Trading or information conduct such as wash trades, spoofing or false rumours intended to distort the price or supply of securities.
- Tipping
- Disclosing inside information to another person outside the normal course of duties, encouraging that person to deal in the affected securities.
- Blackout period
- A window around financial results announcements during which insiders and the issuer are restricted from dealing in the company's securities.
- Independent director
- A board member free of material relationships with the company or its management, required in specified numbers under the Corporate Governance Code.
- Audit committee
- A board committee of independent directors overseeing financial reporting, internal controls and external auditor independence and performance.
- Related-party transaction
- A transaction between the company and a director, major shareholder or affiliate that must be disclosed and approved under conflict-of-interest rules.
- Immediate disclosure
- The obligation to publish material price-sensitive information without delay, accurately and simultaneously to all investors through the official disclosure channel.
- Disclosure officer
- The company officer responsible for ensuring timely and accurate filings and announcements to the exchange and the CMA.
- Periodic financial reporting
- The scheduled filing of audited annual and semi-annual financial statements with management discussion, prepared under IFRS and approved by the board.
- Mandatory tender offer
- An offer required to all shareholders on equal terms when a person, alone or with concert parties, reaches the control threshold in a listed company.
- Concert parties
- Persons acting together under an agreement to acquire or exercise control over a target company, whose holdings are aggregated for threshold tests.
- Substantial shareholding notice
- A disclosure filed when a holding reaches, crosses or falls below specified percentage thresholds, commonly starting at five percent of voting rights.
- Beneficial owner
- The natural person who ultimately owns or controls a customer, commonly identified at a twenty-five percent ownership threshold or through other control.
- Politically exposed person
- A person entrusted with prominent public functions, plus family and close associates, requiring enhanced due diligence and senior management approval.
- Suspicious transaction report
- A confidential report filed with the Financial Intelligence Unit and the CMA when a firm suspects money laundering or terrorist financing, without tipping off the customer.
- Enhanced due diligence
- Additional identification, source-of-funds and monitoring measures applied to higher-risk customers, jurisdictions and transactions beyond standard customer due diligence.
- On-site inspection
- A CMA supervisory visit to a licensee's premises to examine records, controls and conduct, and to require explanations from staff.
- Disgorgement
- An enforcement remedy requiring a wrongdoer to surrender profits gained from a breach, in addition to fines or other sanctions.
- Licence revocation
- The CMA's most severe licensing sanction, withdrawing authorisation to conduct securities activities where serious or persistent breaches occur.
- Criminal referral
- The CMA's transfer of a case to the public prosecution where conduct may constitute an offence under the Capital Markets Law.