Kuwait: The Impact of the New CMA Regulations

Analysis

Foreign companies and multinational firms doing business in Kuwait will need to be keenly aware of the provisions contained in Book 5 of the newly issued Capital Market Authority (“CMA”) bylaws entitled, “Securities Activities and Registered Persons” (“Book 5”).

This article considers the key considerations in respect of Book 5.

Recently, the CMA has trended towards taking a more stringent approach towards the activities that require to be regulated and who can perform these activities.

Book 5 outlines various matters including:

• the types of activities considered as “securities activities” (Article 1-2);

• a description of the licensing conditions (Article 1-3);

• the requirements and procedures for applying and obtaining or renewing a license to perform the regulated securities activities (Article 1-4, 1-7, 1-12);

• the definitions of the professionals who perform the regulated securities activities (Article 1-23 to 1-41);

• the capital requirements for the entities performing certain activities (Annex No. 1);

• academic qualifications for specialized professional roles which conduct these activities (Annex No. 3); and