Capital Markets Authority stresses brokerage firms comply with policies and procedures

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KUWAIT CITY, Feb 29: The Capital Markets Authority has issued alerts to brokerage companies, stressing the importance of compliance with various critical areas such as “operations management policies and procedures,” “record retention policies and procedures,” and the implementation of a “business continuity plan,” reports Al-Jarida daily. Despite efforts by the CMA and the Kuwait Stock Exchange Company to enhance the financial market, some brokerage firms operating within it still need to improve their technical and administrative systems.

These improvements are necessary for them to keep pace with the significant developments occurring in the market. Brokerage companies have been identified as the primary reason for delays in the development of the financial market in recent times. They have also been responsible for the need to re-conduct testing processes for investment tools and services introduced to the market. While some companies have made progress in readiness to obtain a “qualified broker” license, others have faced criticism for inefficiencies in their risk assessment studies.

Upon review, the Capital Markets Authority found these studies and related information ineffective due to non-compliance with regulations outlined in Book Sixteen of the Executive Regulations of Law No. 7 of 2010 and its amendments. The Authority mandates all licensed companies to adhere to a specific framework and system, monitoring their compliance with standards and controls. However, violations have been identified in the risk assessment studies of some companies

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