CMA promotes awareness on investing in financial markets

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KUWAIT CITY, Aug 20: Since its establishment, the Capital Markets Authority (CMA) has diligently undertaken necessary measures to fulfill the objectives outlined in Article (3) of Law No. 7 of 2010 and its subsequent amendments. A key focus among these objectives is the regulation of securities activity to ensure fairness, competitiveness, transparency, and safeguarding of participants in this field. The aim is to mitigate the inherent risks associated with such activity, reports Al-Rai daily. In an exclusive statement to Al-Rai, the Capital Markets Authority emphasized its continuous efforts to promote awareness about fundamental principles of investing in financial markets. These endeavors aim to educate the public, encompassing all strata of society, including novice and small investors, on ways to identify and mitigate risks tied to this form of investment.

Furthermore, the Authority endeavors to enhance understanding of financial fraud and related malpractices. Simultaneously, the Authority has been committed to refining regulations and legislation governing the Kuwaiti financial market. This commitment stems from the aspiration to align with the dynamic growth in this vital economic and financial sector while striving to harmonize with global best practices. The most recent step in this direction involved the issuance of Resolution No. (166) of 2022. This resolution serves to enhance the provisions of the executive regulations of Law No. 7 of 2010, which pertains to the establishment of the Capital Markets Authority and the regulation of securities activity and its subsequent amendments. These enhancements encompass a fundamental overhaul of the guidelines governing investment advisors across all authorized entities.

In line with these efforts, the Authority has introduced the establishment of a registry for professionals engaged in financial analysis. These professionals are empowered to disseminate analyses pertaining to the stock exchange and trends within the capital market. However, this practice comes with distinct prerequisites and criteria to ensure competence. The Authority accentuates its exceptional approach, which spotlights experts aspiring to provide educational and informative services concerning the general trajectory of the stock exchange. This practice aligns with the constitutional guarantees of freedom of opinion and expression under Article (36) of the Kuwaiti constitution.

Nonetheless, the Authority underscores that rights inherently carry specific duties and responsibilities, and consequently, they can be subject to legal controls and well-defined regulatory frameworks. These measures safeguard the market, its participants, and prevent fraudulent activities aimed at unlawfully appropriating citizens’ funds and eroding their savings. In light of this context, the Authority urges all individuals engaged in securities trading to critically examine recommendations, advice, and analyses disseminated through various social media platforms and media outlets. Caution is advised against relying solely on recommendations from unauthorized sources, even if they claim to originate from authorized individuals.

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