Kuwait CMA Rules & Regulations key terms

Kuwait's independent regulator established under Law No. 7 of 2010, responsible for supervising securities activities, licensing market participants, protecting investors and developing the capital market.

The primary Kuwaiti statute regulating securities activity and establishing the Capital Markets Authority, together with its executive bylaws and resolutions issued by the CMA Board.

Detailed implementing regulations issued by the CMA Board under Law No. 7 of 2010, covering licensing, offerings, disclosure, governance, collective investment schemes and enforcement procedures.

The licensed securities exchange on which Kuwaiti listed shares, bonds and other securities trade, operating under CMA supervision and its own approved market rules.

An entity granted a CMA licence to carry on a regulated securities activity such as dealing, managing investments, arranging transactions, custody or investment advice.

Any securities business specified in Law No. 7 of 2010 and its bylaws that may not be conducted without CMA authorisation, including dealing, managing, advising, arranging and safeguarding assets.

The CMA assessment of honesty, competence, financial soundness and reputation applied to licence applicants, shareholders with qualifying holdings, directors and senior managers.

A shareholding in a licensed person or listed company at or above the threshold set by the CMA, which triggers notification and prior approval requirements before acquisition.

The disclosure document published for a public offer of securities, containing all information necessary for investors to make an informed assessment of the issuer, the securities and the risks.

Any invitation to the public to subscribe for or purchase securities, which requires CMA approval and a compliant prospectus unless a specific exemption applies.

An offer of securities made to a limited number of qualified or professional investors, outside the public offer regime, subject to CMA conditions and resale restrictions.

An investor category defined by the CMA, typically institutions and high-net-worth individuals meeting specified criteria, who may access products and offers not available to retail investors.

Any information about an issuer or its securities that a reasonable investor would consider relevant in deciding whether to buy, sell or hold, and which must be disclosed promptly.

The ongoing obligation of a listed company to publish material information, periodic financial reports and governance disclosures promptly and without selective release to favoured recipients.

The scheduled publication of audited annual financial statements and reviewed interim results within CMA-prescribed deadlines, prepared under approved accounting standards.

Precise, non-public information relating to an issuer or its securities that, if made public, would likely significantly affect the security's price.

Trading or procuring trading in securities while in possession of inside information, or unlawfully disclosing such information to another person, and a prohibited market abuse offence.

Conduct that creates false or misleading signals about the supply, demand or price of securities, including fictitious trades, wash sales and disseminating false rumours.

An arrangement pooling investor money to invest in a portfolio of assets, managed by a licensed fund manager and subject to CMA authorisation, custody and valuation rules.

A CMA-licensed person responsible for directing the investments of a collective investment scheme in accordance with its stated objectives, investment policy and constitutional documents.

A licensed institution that safekeeps scheme or client assets, independently of the manager, and performs settlement, recordkeeping and oversight duties to protect investors.

The value of a scheme's assets less its liabilities, divided by the number of units in issue, used to price subscriptions and redemptions.

The requirement to hold client money and securities separately from the firm's own assets, in designated accounts, so that client property is protected on insolvency.

CMA-issued governance standards for listed companies covering board composition, independence, committees, disclosure and shareholder rights, applied on a disclose-and-explain basis.

A board member free of relationships with the company, its management or major shareholders that could materially affect objective judgement, as defined by CMA criteria.

A board committee, chaired by an independent director, that oversees financial reporting, internal controls, external audit and the relationship with the statutory auditor.

A management body responsible for identifying material information, coordinating its timely release and maintaining records supporting the issuer's continuous disclosure obligations.

The obligation to notify the CMA and the exchange when holdings cross specified percentage thresholds, disclosing the size and nature of the interest and any change.

Cooperation between persons on the acquisition of securities or exercise of voting rights under an agreement or understanding, whose interests are aggregated for disclosure and takeover purposes.

A takeover offer that must be made to all shareholders at a fair price once a person, alone or with concert parties, acquires control or crosses the prescribed voting threshold.

The extra amount paid above the market price to acquire a controlling block of shares, which informs the minimum price required in a mandatory tender offer.

A report filed with Kuwait's Financial Intelligence Unit when a firm knows, suspects or has reasonable grounds to suspect that funds are proceeds of crime or linked to terrorism financing.

The process of identifying clients, verifying identity using reliable documents, identifying beneficial owners and understanding the purpose and expected nature of the business relationship.

The natural person who ultimately owns or controls a client or the funds involved, identified under CMA rules by ownership thresholds and control criteria.

Additional scrutiny applied to higher-risk relationships, such as politically exposed persons, correspondent relationships or clients from higher-risk jurisdictions, including source-of-funds checks.

A person entrusted with prominent public functions, or a close associate or family member, whose relationships require enhanced due diligence and senior management approval.

Kuwait's national body that receives, analyses and disseminates suspicious transaction reports and other financial intelligence relating to money laundering and terrorist financing.

Kuwaiti legislation criminalising money laundering and terrorist financing, imposing recordkeeping, reporting and due diligence duties on financial institutions and other regulated entities.

The CMA and exchange function of monitoring trading, disclosures and participant conduct to detect market abuse, breaches of rules and threats to market integrity.

A penalty imposed by the CMA for rule breaches, which may include warnings, fines, suspension or revocation of licence, or restrictions on a person's market activity.