On Wednesday March 6.2013, Jordan Securities Commission (JSC) will hold a workshop in its headquarter concerning the “Instructions of Issuing Companies Disclosure, Accounting & Auditing Standards for the year 2004 & Preparing Annual Reports of Public Shareholding Companies”.
This aim of this workshop stems from the Commissions’ duties & responsibilities to spread the awareness & culture of investing in the securities market among all concerned parties. As well as, to stress the importance of disclosure & transparency to all listed companies in the Amman Stock Exchange (ASE).
The ‘Workshop’ will emphasize the importance of the Instructions of Disclosure for Public Shareholding Companies in the capital market & the exchange of ideas & suggestions with the representatives of these companies.
Furthermore, the ‘Workshop’ will concentrate on proper methods to be used when preparing Annual reports. It will also indicate major mistakes of previous years’ Annual Reports & how to avoid this in the future. Moreover, it will deal with Periodic Data & Reports used as the main reference to any investment decision in the market & preparing these to cope with the Securities Law & the Instructions of Issuing Companies Disclosure, Accounting & Auditing Standards for the year 2004.

Ref:
http://www.jsc.gov.jo/News/Nws_NewsList.aspx?Type=P&lang=3&Site_ID=1&CATID=20&menu_id2=245#11

 

The Securities and Commodities Authority's Training Center (SCATC) organized a training course titled “Portfolios: Risk Analysis and Assessment Instruments". The course examined an array of rules for managing funds and portfolios, such as the modern portfolio theory, asset allocation, and investment persity. It gave an overview of investment management, mutual fund types, mutual fund strategies, risk measures, and performance assessment.

  

As part of the National Investor Awareness Project initiatives, the Securities and Commodities Authority (SCA) held an awareness-raising seminar titled “Stock Portfolio Construction and the Difference between Investment and Speculation in Financial Markets". The seminar—tailored for investors, brokers, and financial analysts at UAE-based brokerage firms— was organized in collaboration with the Abu Dhabi Securities Exchange (ADX). It discussed the most important investment- and speculation-related concepts and how to construct a stock portfolio that takes risk and return into consideration, as well as the possibility to extend such portfolio to include other assets, such as bonds and commodity derivatives.

Securities & Commodities Authority (SCA) held a panel discussion on “The Position of Financial Markets in the UAE". The panel outlined the key achievements of the SCA attained recently, especially in relation to the development of the regulations concerning the mutual funds, primary market, and governance requirements, and occupying advanced ranks on the World Bank competitiveness indexes, and the launch of the Islamic capital market development strategy.

The events organized as part of SCA's Governance Week have already kicked off. They include a set of initiatives and activities that aim to enhance awareness of governance, introduce governance principles, and explain the advantages that the sound application of governance controls brings to companies and their shareholders.
The events held as part of this week will also include a competition on SCA's social media accounts. SCA will also post a governance awareness booklet on its website. A number of articles will be featured on newspapers and awareness messages will be posted on financial newspapers and SCA's website and social media accounts.   

The Board of Trustees of the Professional Training and Examinations Centre (PTEC) of the Securities and Commodities Authority (SCA) held its sixth meeting of the fourth session under the chairmanship of CEO of SCA. The meeting discussed a number of issues related to enhancing the PTEC's performance and took a number of decisions relating to the PTECS's developments and tasks in the upcoming period.

The Securities and Commodities Authority (SCA) and Nasdaq Dubai have begun a joint awareness campaign on trading derivatives aimed at inpidual investors.
The exchange and the SCA, the UAE's financial market regulator together delivered an inaugural seminar on tradable assets that are in increasing demand, focusing primarily on equity futures as well as options.
The seminar covered the derivatives products that are available in the region and how to trade them. It explained how to incorporate derivatives into overall trading strategies, including understanding the relationship between derivatives prices and the prices of the underlying shares or other assets. 

Under the patronage of H.E. Minister of Economy and Chairman of the Board of the Securities and Commodities Authority (SCA), and through the relentless follow-up efforts of Dr. Obaid Al Zaabi, CEO of SCA, a forum was held under the title “Al Sharqiya Youth and Investment in Securities".
The forum was held at the University of Sharjah-Kalba Campus in response to directives from the SCA board, chaired by H.E. Al Mansoori, to enhance investor awareness among various segments of the public, especially the youth; to urge them to invest in securities; and to introduce them to the job opportunities available in this field. The forum was held in collaboration with the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM), as well as with representatives from brokerage companies and financial services companies, being central to the investments undertaken in UAE-based financial markets. Also taking part in the forum was the Youth Council for Future Economy, which receives strong support from the SCA chairman. 

 

The Securities and Commodities Authority (SCA) would like to draw the attention of investors and the public that the Authority is receiving several inquiries from the public about the validity of the registration certificates or license certificates obtained from promoters or representatives of companies offering investment opportunities and claiming to be licensed by the SCA. As these certificates were found to be "false certificates" and the names of the companies mentioned therein are not registered or licensed by the SCA, and that the investment offers that are marketed and promoted by the delegates of these companies are "fake offers" aimed at investors, especially inpiduals. The SCA would also note that some companies have been spotted stating in their websites that they are licensed by the SCA and/or by other regulatory authorities within the UAE. However, they were found unlicensed.

In most cases it turns out that these companies are "fictitious entities" that carry out financial fraud and communicate with inpiduals through several means, including telephone calls, text messages, e-mails, social media, induction and interview with representatives of these companies or entities. These companies introduce seductive offers, promises to earn high returns and to get rich quickly, and these claims are backed by forged documents and certificates of licenses. Also, the representatives of these companies tend to insist on inpiduals to make their decision to invest immediately as soon as the company and its services are introduced, and without leaving time for inpiduals to think about the investment offer, and they communicate with inpiduals throughout the day to push them to invest.

The SCA reiterates its caution to deal with such companies and their representatives, or signing any forms or contracts issued by them or transferring any funds in their favor. The SCA urges investors and the public to verify the license of companies that offer investment opportunities and claim to have legal licenses, through reviewing the list of the registered and licensed companies on the website of the Securities and Commodities Authority (www.sca.ae), or similar regulatory authorities (such as the Central Bank of the UAE, the Insurance Authority, the Dubai Financial Services Authority, the Financial Services Regulatory Authority of Abu Dhabi Global Market) or through direct communication with the SCA and similar regulatory authorities.

 

As part of its efforts to support the national sustainability agenda and to bring the UAE-based financial markets on par with international markets, the Securities and Commodities Authority (SCA) released a publication, titled: “An Introduction to Sustainable Investing” on its website. This is part of a new move that sets the stage for the implementation of SCA’s plan for sustainable capital markets launched early this year. The plan followed SCA’s last year’s announcement of an initiative to form a platform for carbon emissions trading. 

The publication covers a number of key areas, including the meaning of sustainable investing, its importance in making long-term returns, its positive implications for the environment and the economy, its objectives, and the main differences between sustainable investing and the other types of investments.

This electronic publication examines the incentives that motivate the community to shift to sustainable investing, such as values and beliefs. It addresses the approaches used in sustainable investing and the financial instruments available to investors.

The publication sheds light on the challenges facing investors in terms of the lack of information available about corporate sustainability practices; difficulties associated with regulatory, technical, and commercial risk; the lack of investment opportunities that are consistent with sustainable investment criteria; and the lack of experience in this field.

SCA seeks to fully complete the implementation of its plan for sustainable capital markets by mid-2020. The detailed strategy included in this plan represents the corner stone in the move towards a national capital market that supports sustainability. Completion of this plan requires the combined efforts of all related actors to help it reach its full potential and put the UAE-based capital markets at the forefront in this field.

 

 

 

As a part of Authority’s Active Role in the International Organization of Securities Commissions (IOSCO)
Regulatory authorities and financial markets in the UAE participated in the events of the International Organization of Securities Commissions (IOSCO), which will be launched on Sunday as part of the "Global Investor Week 2021" campaign that aims this year to enhance the financial culture of investors and shed light on the issues around which the campaign events revolve (sustainable finance, and fraud and deception prevention).
The authorities participating in the campaign are the Securities and Commodities Authority (SCA), Abu Dhabi Securities Exchange (ADSX), Dubai Financial Market (DFM), Dubai Gold and Commodities Exchange (DGCX), Financial Services Regulatory Authority of Abu Dhabi Global Market, and Dubai Financial Services Authority. The authorities participating in these events look forward to strengthening and elevating the UAE's position as a leading financial center in the region and the world, in line with the vision of the UAE’s government and the State's national agenda.
The participating authorities organized an integrated package of events, including virtual seminars for investors, dialogue sessions for universities and colleges students, in addition to a campaign to be launched via social media platforms during the period between 10 and 14 October to shed light on the issues around which the campaign events revolve (sustainable finance, and fraud and deception prevention).
In addition to broadcasting awareness messages in Arabic and English through various media, as well as to the accounts of the authorities participating in the campaign on social media networks.
As for the campaign messages, they vary between messages related to IOSCO, and others prepared by Authority and aimed at educating those concerned with the financial sector in general, and the activities of securities in particular and they focus mainly on the themes of "financial fraud" and "sustainable finance".
"SCA participates in the events of "Global Investor Week 2021" by "IOSCO" due to its being an active member of the International Organization of Securities Commissions, knowing that supervisory authorities representing at least 100 States, which are members in IOSCO, participate in the events.
The State's supervisory authorities are keen to actively participate in the various activities of international organizations and their regional committees, so that it can follow up on the latest developments and keep pace with relevant global standards, which will positively reflect on the local economic reality, and reflect the position of the UAE in international forums.
It should be noted that the International Organization of Securities Commissions (IOSCO) had launched its awareness initiative entitled "Global Investor Week" for the first time in 2017, with the aim of raising the levels of financial knowledge and enhancing the culture of capital market investors.
Year after year, this initiative acquires double importance in return for its efforts to educate and protect investors, a matter that is increasing in importance in light of the conditions witnessed by the global economic conditions since nearly two years, as a result of the repercussions of the Corona virus pandemic and the precautionary measures to confront it.
The purpose of this initiative is to enhance the culture of investors and preserve their rights through the concerted efforts of all authorities supervising the securities and commodities sector within the member states of the Organization, in addition to employing various means of communication and media in order to enhance investor awareness and highlight the role entrusted to regulatory authorities and financial markets in protecting investors.
"IOSCO" - which is considered as the reference authority for the supervisory authorities of the securities markets in the world - includes members from more than 100 States around the world, as its membership includes the securities regulatory authorities, the World Bank, the International Monetary Fund and several financial markets in addition to financial and monetary institutions. The number of its members is more than 200, including 114 of the securities regulatory authorities. The member states of IOSCO control and regulate more than 95% of the financial markets around the world. IOSCO seeks to strengthen the bonds of cooperation among its members and to develop regulatory standards on the securities markets in order to ensure the highest levels of transparency and effectiveness in trading operations, facilitate the exchange of information and experiences, and standardize regulatory standards.
IOSCO also seeks to provide protection for investors and increase their confidence in the integrity of financial markets by encouraging cooperation in the field of financial market supervision and brokers and cooperation for the purpose of curbing improper practices. IOSCO works to enhance the coordination process among all its members in order to develop, apply and implement internationally recognized standards. IOSCO facilitates the exchange of information at the regional and international levels to assist in the development of financial markets, strengthening the infrastructure of the markets and enacting appropriate legislations.

 

 

 

As part of its efforts to enhance the skills and knowledge of participants in the capital market sector and to develop the training programs in line with the sector’s needs, the Securities and Commodities Authority (SCA) renewed the agreement signed with the UK-based Chartered Institute for Securities and Investment (CISI), U.K, with regard to launching the revised UAE Financial Rules and Regulations exam and renewing the cooperation regarding specialized professional qualifications.
The renewed agreement was signed on behalf of the SCA by its CEO H.E. Dr. Maryam Buti Al Suwaidi and on behalf of the CISI by its Chief Executive Mr. Simon Culhane.
The renewed agreement confirms the updating of the SCA/CISI Rules and Regulations exam as part of the SCA’s revised licensing regime and extends its coverage to a wider range of roles in the financial market.
According to the agreement, the CISI will prepare and review the study materials and professional exams for fifteen courses provided by SCA’s PTEC, update the UAE Financial Rules and Regulations study material on an annual basis, oversee and review the Arabic translation of the course to ensure its compliance with the technical specifications required by SCA, and review the performance of exam applicants.
The fifteen exams in the agreement include, in addition to the UAE Financial Rules and Regulations, the following: Introduction to Securities and Investment (International), Securities, International Certificate in Wealth and Investment Management—(Level 3), Risk in Financial Services, Operational Risk, International Certificate in Advanced Wealth Management (Level 4—Advanced), Global Financial Compliance, Corporate Finance Technical Foundations, Global Securities Operations, Combating Financial Crime, Derivatives, Fundamentals of Financial Services, IT in Investment Operations, and Wealth Management Practices.
The SCA licensing regime mandates specific CISI examinations, combined with the UAE Financial Rules and Regulations, for specific roles in the capital market sector. This provides a qualification pathway for licensing purposes.
The CISI is also responsible for receiving exam booking requests and providing the necessary technical support to ensure the readiness of electronic systems for exams, and providing the necessary maintenance for them.
It is worth noting that the SCA’s PTEC is the first of its kind in the region that is specialized in qualifying and training brokers and professionals in the financial services industry. It awards specialized certificates that qualify to work in the UAE financial markets, in cooperation with the CISI, which is one of the world’s leading institute in the field of professional qualifications in the financial services industry.
The CISI and SCA have been working together since 2009. During this period, over 12,000 exams have been taken, enabling qualified practitioners to work in the UAE financial services market.

 

Syrian Commission on Financial Markets and Securities (SCFMS) launched a work shop concerning the New International Auditing Standard (IAS) No (701), under the title “The Notification of the Key Audit Matters in the Independence Auditor’s Report.”
The workshop discussed the importance of applying the New International Auditing Standard (IAS) No (701), Because of its role in achieving the consistency, and the possibility for comparing the various Joint – Stock Companies’ Financial Reports with them in many other countries, in addition to the importance of the high efficiency and the safe scientific methods at the work of the Accountings’ Auditors.

 

The Strategic Framework for the Re- Structuring Process in Syria, the Dynamic Relation Between the Securities’ Prices Index and the Exchange’s Prices, and the Evaluation of the Banks’ Capability for Handling the Financing’s Risks, are the most important topics at the First Scientific Conference for the Management, Financing and Economy, which is organized by the Private International Arabic University, in collaboration with the Ministry for High Education, at Sheraton Hotel, Damascus.

Because of the Syrian Commission on Financial Markets and Securities’ (SCFMS) adherence to have the necessary high professional qualified accredited Compliance Officers, at the Financial Services and Intermediary Companies to conduct their works.
The Syrian Commission on Financial Markets and Securities’ (SCFMS) organized a Training Course to qualify number of nominated for accredited Compliance Officers. The lectures tackled a number of topics, the most important of them are:
- The working methods and procedures at the Financial Services and Intermediary Companies.
- The Importance and role of the control at the Financial Services and Intermediary Companies.
- The tasks and duties of the Compliance Officers.
In addition to an overview of the specific Regulations and Directives that are related to the work of the Financial Services and Intermediary Companies.

 

 

The Securities Commission holds a ceremony to mark the centenary of the establishment of the Iraqi state. 

Islamic Finance News (IFN) returns to Oman with the IFN Oman Forum & Dialogue in partnership with the Capital Market Authority, Sultanate of Oman (Oman CMA) held at the new Grand Millennium Muscat Hotel. The Islamic finance sector in Oman has gone through a commendable growth rate, highlighting the growing prominence of Shariah compliant finance in its economy. Having hosted the IFN Seminar and Dialogue in 2016 together with the Oman CMA.

The Center organized a workshop held in Grand Hormuz Hotel on the new Code of Corporate Governance , with the participation of Chairman and members of the Board of Directors and the executive management of the company VOLTAMP Energy.

The program included and emphasize on the importance of companies and their status and principles for controlling economic institutions’ affairs according to good governance practices that ensure its safe conduct activities and achieve the best levels of performance. The agenda of the program introduced the participants to know the historical roots to establish the concept of governance and how it has become a necessity sought by the company in the conduct of administrative and financial affairs with a review of the experiences of international countries in activating the foundations and principles of corporate governance and their effects in improving their performance and ability to meet the challenges, crises and market volatility.
The workshop program included a definition of the main four bases of corporate governance which are; accountability, transparency, justice and responsibility, under which the six principles of governance come; which are, the general framework , shareholders rights, and equal treatment of shareholders, role of stakeholders, disclosure and transparency, responsibility of the borad, and mechanisms of the Board of Directors, and how governance practices reflect on the operational performance, improve productivity and enhance the efficiency of external capital level of confidence. With regard to the development of the members of the Board of Directors skills, the program included topics related to the nature of the work of the Board and the powers entrusted to it, and the importance of separating the executive management of the Baord and the nature of the structural composition of the Board and the quality of its committees and how they can be members of the Board and its committees shall exercise their powers while avoiding conflicts of interest the program dealt with .
It also reviewed how the formation an effective Board of Directors in a way that contribute to enhance performance and increase efficiency through the appropriate combination of members with their skills and abilities commensurate with the powers entrusted to them. The program also stressed the importance of independent member and how to choose them as the existence of independent members can provide more guarantees for market participants to secure their interests. It has been also identified the importance of the Board 's committees and the definition of the Standing Committees and functional commissions and the considerations that must be introduced when the formation of committees. The program also emphasized the role of the Secretary of the Board of Directors and the method of choosing so .
On the other hand , it devotes a large time of the program to talk about the role of the Board of Directors in developing a strategy and performance monitoring through which the Board can invest the available resources to achieve the company's goals and overtake expected challenges. And also it discussed how to achieve interaction between the Board of Directors and the executive management of the company, and how the governance can contribute to risk management as to talk about many topics related to the role of the Board in the disclosure of information, transparency and the development of systems and mechanisms so as to achieve greater clarity and enhance the level of customer confidence.

The Capital Market Authority organized a virtual Seminar titled “The Role of Financial Technology in the Future of Capital Markets” in collaboration with the Arab Securities Association to discuss the latest developments in the securities markets and the challenge they encounter with regard to financial technology transactions as well as the key regulatory requirements to safeguard the participants.

The seminar included a number of topics the key were how to recover from the impact of the pandemic and how the tech can save the markets in case of any pandemic. The seminar also highlighted the key aspects of the future of Fintech from the regulatory perspective and virtual assets, decentralized financing of the capital markets and other related topics.

 

In continuation of the GCC awareness campaign organized by the GCC securities commissions the Capital Market Authority organized a virtual workshop on reading the financial statements with the participation of citizens and residents in the GCC states. The object of the workshop is to introduce to the participants the tools that help in reading the financial statements emphasizing on the key elements in the financial statements.

The workshop was organized due to the importance of the financial statements in displaying the financial performance of the companies listed in the stock exchange whereas knowing reading the statements is key to investment awareness as sound method for making investment decision in any of the listed companies, and the workshop was part of a package of specialized awareness programs in reading financial statements in October.

The workshop was presented by Ghadeer Mohammed Ridha Hassan, Portfolios Manager, United Securities. The workshop talked a number of topics on the concept of financial statements and their importance besides acquainting the participants with the four pillars of financial statement namely the income statement, financial position, cash flow statement and statement on change in equity. Each of the statements was explained and their key components to analyze to find out the position of the company and how to benefit based on the investment strategy of each investor.

It is worth to note that the GCC awareness program conducted by the CMA in the past two months focused on two main topics, the role of the capital market in the national economy and how to read the financial statements during the period from beginning of September to end of October. Awareness material were distributed to acquaint the community with the importance of the capital market as a source of financing for huge development and investment projects and the financing features of the capital markets whether to the issuers of securities or the investor.

 

The first Corporate Governance Conference was held under the patronage of Qatar Financial Markets Authority (QFMA) and by organizing of Hawkama Center, supported by major banks and public shareholding companies in Qatar, during the one-day sessions, the conference highlighted the Governance Code for Companies & Legal Entities Listed on the Main Market, and the Corporate Governance Code for Companies listed on the Venture Market” issued by QFMA, as well as reviewing corporate governance practices at the local and international levels and presenting the international best practices and experiences.
This conference comes as a part of the QFMA’s implementation of its strategic plan under Qatar National Vision 2030 with anticipating a positive future vision that reflects the QFMA’s objectives based on the Qatar National Development Strategy and the financial sector objectives to enhance the public interest and improve the Qatari capital market. He also pointed out that such efforts culminated in the top ranking of the Qatari market among the Arab world according to most international classifications of the capital market in 2016, and upgrading the Qatari market to emerging market status in three of the largest international investment indicators.

The Qatar Financial Markets Authority (QFMA), in collaboration with the Union of Arab Securities Authorities (UASA), held a specialized training program on "Combating Financial Crimes". The two-day training program was participated by 144 trainees representing 51 entities in the State, including professionals and those working within financial services industry, involved in regulation, law enforcement, trade and commerce, as well as private sector.
The program addressed various issues related to financial crimes, including money laundering, terrorist financing, bribery, corruption and fraud, along with the practical defences, and focuses on how laws, regulations and best practice continue to evolve across the entire spectrum of associated activities. 

Qatar Financial Markets Authority, in cooperation with the Union of Arab Securities Authorities, held an – online training program "Managing Operational Risks in Financial Institutions" within the framework of the Fifth World Investor Week for the International Organization of Securities Commissions (IOSCO).
The 3 days program was held via Zoom application, targeted financial services professionals, in particular workers in the field of financial institutions and services, and employees in regulatory and supervisory agencies, law enforcement agencies and anti-money laundering.
The training program details dealt with different topics, including business risks of financial institutions, the practical techniques required to investigate operational and financial risk incidents, and how to manage these risks in the long term.
The topics also included presenting a model of appropriate behaviors for managing operational risks in the workplace, contributing to enhancing facing them and the most important organizational considerations in how to manage them.
42 participants attended the training program, representing 10 entities from Qatar, and 2 from outside, "Jordan Securities Commission" and "the Capital Market Authority of Oman". Participating entities from Qatar include, in addition to Qatar Financial Markets Authority, Commercial Bank for Financial Services, Qatar Securities Company, The Group, Al Ahli Brokerage Company, Deloitte & Touche, PKF, Qatar Central Securities Depository, and Qatar Financial Center Regulatory Authority.

 

CMA concluded the events of its first awareness program for 2017 through an awareness workshop which covered “Early warning indicators relevant to securities activities”.
The workshop covered various aspects, as the most important being:

• Importance of early warning indicators.
• Economic Indicators.
• Indicators related to combined financial positions of listed companies in Boursa Kuwait
• Indicators related to the activity of Boursa Kuwait
• General Index

“ Capital Markets Development in the State of Kuwait” was the title of CMA’s second annual conference. The one-day conference was held on Sunday March 26, 2017 in Sheraton Hotel. It was attended by officials concerned with economy and securities activities, in addition to representatives of listed companies and persons licensed by the CMA.

A number of local, regional and international experts took part in the conference; Mr. Anwar Al-Ghaith - Executive Director for Information Technology & banking operations at Central Bank of Kuwait, Mr. Othman Ibrahim Al-Issa CEO of Kuwait Clearing Company, Mr. Khaled AlKhaled - Vice Chairman and CEO of Boursa Kuwait, and Mr. Mohammad Saud Al-Osaimi - Executive Director/Markets in Boursa Kuwait. Regionally, participants were Mr. Mohamed Alhadari - Deputy CEO of Organizational Services & Support at Securities & Commodities Authority SCA, and Mr. Maged Fanous the Lead Risk and Regulatory Partner for the financial sector with EY MENA region.
The conference consisted of three sessions. The first one was about the Post-Trade Model, the second was entitled “Boursa Kuwait: Challenges and Aspirations, and the last session was about the electronic disclosure language XBRL.
Thus, the CMA announces concluding the events of its annual conference, hoping that it had achieved the required objectives.
It is worth mentioning that the CMA will announce soon the schedule of its specialized workshops to explain the requirements and objectives of the Post-Trade Model and the XBRL that will be executed in the near future.

We would like to draw your attention to the provisions of Article (3-42) of Module Sixteen "Anti-Money Laundering & Combating the Financing of Terrorism" of the Executive Bylaws of Law No. (7) of 2010 regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments, pursuant to Resolution No. (72) of 2015 issued on 9/11/2015 which stipulate that the licensed person must verify and pay attention to all business relationships or transactions with clients or with financial institutions from countries that do not apply or insufficiently apply the FATF's recommendations. If the Authority notifies the licensed person that such countries insufficiently apply the FATF's recommendations, the licensed person shall consider all business relationships and transactions conducted in such countries as high-risk ones, which require implementing the measures set in Article No. (3-21) of the same chapter. Accordingly, the Financial Action Task Force (FATF) has updated the list of countries which do not or insufficiently apply the FATF recommendations in its recent meeting held in June 2017. The CMA is keen to play its role as stipulated in the above mentioned Article.

The Capital Markets Authority (CMA) will hold its fourth annual conference " Capital Market Reforms Through Regional Initiatives" at Badriah ballroom, located at the Jumeirah Beach Hotel and Spa, at 9:00 am on Wednesday January 23, 2019.
The CMA’s approach to holding such annual events started in 2016. An annual conference is held in the first quarter of each year. This presents an opportunity for discussing the most important issues related to the capital markets and securities activities, and the functions of the regulatory bodies along with reviewing the recent updates in the field through the study of leading global cases in the fields mentioned above, which are presented by a selection of international and regional experts and specialists.

The Capital Markets Authority (CMA) started its awareness program for the year 2019 through the opening of its first awareness workshop.
The workshop, presented by Director of Mergers & Acquisitions, at the CMA, and Manager of Acquisition Section, discussed the topic of "Partial Purchase Offer", its definition and nature, in addition to its terms and conditions, and procedures of implementation.

The Capital Markets Authority (CMA) roadshow in UK targeted high-profile UK-based institutional investors, in order to attract more institutional foreign investments, present the latest developments in the Kuwaiti financial markets and to hear their opinions on their investment experience in Kuwait. Many topics were covered, in particular those related to the market upgrade on the MSCI index. All reactions and observations were positive, and all institutions commended the efforts exerted by the parties involved in the market development project and praised the Kuwaiti market high standard of professionalism accomplished in a short time.
Among the highlights were the plans of the parties to implement the Central Counterparty (CCP), which provides better risk management in light of the Market Development Plan that will introduce new, more advanced and sophisticated products such as derivatives. The expected mechanism for joining the index in case of upgrade was also discussed.

As part of its efforts to implement the "Qualifications Examinations Project for Registered Employment Positions”, which was initiated by the CMA on Monday, April 15, 2019, the Capital Markets Authority (CMA) concluded on Thursday, April 25, 2019 The Special Awareness Program for Licensed Persons under the " Qualifications Examinations Project for Registered Employment Positions", which was implemented over the last week (21-25 April) at the CMA’s headquarters, within the framework of the Capital Markets Authority to apply the Qualifications Examinations Project for Registered Employment Positions in cooperation with the Chartered Institute for Securities & Investment (CISI), in order to ensure the successful implementation of this project in the State of Kuwait.
The program included ten awareness workshops, which lasted for one week, with two workshops a day for the target groups represented by licensed persons at the Capital Markets Authority, where 174 people participated from 79 parties. The workshops included the following topics:
• Objectives of the Professional Qualifications Program (PQP)
• PQP
• The policy of exemption from professional qualifications
• The mechanism of applying the PQP
• Registration procedures for registered employment positions
• Training to pass professional qualifications examinations
• The mechanism for applying for professional qualifications examinations

 

The Capital Markets Authority has held an awareness event concerning Indices and Passive Investing on April 29, 2019, in Kuwait. In his opening speech, Mr. Muthanna Al-Saleh, Head of Markets Sector, mentioned that the CMA is aware of the importance of this matter especially with the marked growth of the passive investing globally and regionally. Mr. Al-Saleh stated that since Kuwait has been of an importance to the world market indicators, there must be a need to learn how these indicators work and affect the capital markets. In addition, he mentioned that many products will be introduced as a part of the market development project, some of which will be based on the markets’ indices.
During the event, S&P Dow Jones representatives made a presentation about markets indices, their types, and the products that are based on them, as well as the procedures that are used to upgrade the markets and the countries in the international indices.
What makes this event more important is that it coincides with the fact that Kuwait has been upgraded in the international shares indices at S&P Dow Jones and FTSE Russell, and it is included on the watch list for the MSCI emerging index. Thus, Kuwait will officially be included in emerging markets indices at S&P Dow Jones in September 2019, and is expecting its inclusion in the emerging markets by MSCI in June 2019, to be officially included in May 2020.

 

The State of Kuwait, represented by the Capital Markets Authority (CMA) and the Central Bank of Kuwait (CBK), will participate in the activities of the "World Investor Week Campaign" to be held during the period (October 4-11 of 2021) under the umbrella of the International Organization of Securities Commissions "IOSCO".
The Kuwaiti participation in the campaign’s activities emerge from the keenness of the local supervisory authorities on the active presence in the various activities of international organizations and their regional committees, which enables it to follow the latest developments and keep up with relevant global standards, which is positively reflected on the local economic reality, and reflects Kuwait’s position internationally.
This year's World Investor Week campaign is expected to highlight the importance of raising awareness on four main topics: frauds and scams prevention, sustainable finance, basics of investment, and online investing. It will also introduce the methods and instruments of successful awareness, not only at the level of investors, stakeholders and those interested in investment issues, but also for all segments of society, including youth, women, and future investors, especially in the various educational stages, starting with middle school and ending with university education. These issues are the core of the tasks and concerns of the CMA and the CBK, which recently started joint awareness-raising efforts on several issues aside from joint participation in the activities of this campaign.
Participation in the campaign activities includes broadcasting awareness messages in Arabic and English through various media, in addition to the social media accounts of these two regulatory bodies. As for the campaign messages, which vary in nature between messages specific to the international organization, and others that were the result of a joint preparation between the CMA and the CBK, it aims to raise awareness of those concerned with the financial sector in general, and the securities activities in particular, and focuses mainly on the topics of “frauds and scams prevention” and “sustainable finance.” Without neglecting the other two topics of the campaign related to the basics of investing and e-investing.
Finally, it should be noted that the International Organization of Securities Commissions "IOSCO", which is the supervisory authority on securities markets in the world and includes members from more than 100 countries in the world, has previously launched its unprecedented awareness initiative under the title "World Investor Week" for the first time in 2017, with the aim of raising the level of financial knowledge and enhancing the knowledge of capital market investors. Year after year, the activities of this initiative acquire more importance in exchange for its efforts to educate and protect investors, which is increasingly important in light of the conditions of instability in the global economic situation for nearly two years, as a result of the repercussions of the Corona virus pandemic and the precautionary measures to confront it.

 

The Central Bank of Kuwait (CBK) in collaboration with the Capital Markets Authority (CMA) launched a joint financial literacy campaign regarding investing or dealing in crypto assets, or so-called “virtual currencies”.

As part of the Capital Markets Authority’s (CMA) role in the development of the community and national cadre, and the enhancement of their competitiveness to engage in the labor market in the field of capital markets, the CMA has launched its Seventh Training Program for Recent Graduates. A welcoming speech was given by Prof. Ahmad Al-Melhem –Chairman of CMA Board of Commissioners and the Managing Director, in which he praised the national cadres and emphasized that the CMA trusts their eagerness to benefit from the advantages provided by the program. He also stressed the importance of commitment and dedication to hard work and diligence to achieve the CMA’s aspirations to prepare ambitious national personnel to upgrade the national economy.
The program commenced on Sunday 28 November 2021. It will be followed by local and field training program, and then there will be a program abroad. The program attracts distinguished graduates from the following fields: Business Administration, Law, Industrial Engineering. The trainees will undergo an intensive training program in financial and economical fields.
The program’s objective is to train and qualify newly graduated students to qualify national cadres on scientific, professional and technical basis and provide them with the opportunity to view the financial world locally and internationally, in order to qualify them to work in various local and international financial markets.
Through this initiative, the CMA seeks to enhance the professional capabilities of young national cadres and raise awareness on the important role of supervision of capital markets, and emphasizing the role of the CMA’s social responsibility in community development through investing in national cadres.

As part of the efforts of the entities regulating the financial markets in the GCC countries to raise the awareness of the citizens and residents of the GCC countries, and in line with the directions of their highnesses and excellencies the members of the Ministerial Committee of the Chairmen of the Boards of Directors of the entities regulating the financial markets in the GCC countries, an awareness campaign has been launched on the importance of the corporate governance under the slogan of “Effective Governance is the Basis of the Sustainable Development”.
The campaign aims to provide the guidance, regulations, and systems of governance to the board members and officials of the listed companies, avoid the risks related to the companies’ performance and management, emphasize that good governance leads the company to achieving its goals efficiently and effectively, the optimal use of resources and a conscious management to the risks, in addition to preparing a smart strategy to the company’s work.
The corporate governance campaign is directed specifically to several categories that include the board members of the listed companies, the senior officials of the public shareholding companies, the officials of governance and investors relations of listed companies, the prospective shareholders and investors, and persons of interest in general such as the researchers and the media professionals.
The campaign uses several means that include social media networks, satellite channels, newspapers, websites, and webinars. In addition, it provides the contents through a collection of media arts such as infographics, animation, digital publications (brochures and manuals), and informational competitions.
This campaign is an extension of the bonds of cooperation between the GCC countries, especially in the economic matters as the Gulf financial markets are attracting local and international investments.

December 16, the Capital Markets Authority (CMA) conducted a virtual awareness workshop through the virtual conference platform (Webinar) covering the subject of “The Forms of the Corporate Finance and Governance Tasks” that will be launched by the beginning of the next year, in particular on January 2, 2022.
Furthermore, on December 14, 2021, the CMA has invited all the persons dealing in the securities exchange and those concerned with the corporate finance and governance matters to register and participate in this event, which aims to raise the awareness in several aspects related to the mechanisms of meeting the requirements of delivering the services forms relevant to the corporate finance and governance. For example, the mechanism of the general user (primary) to provide other users access to each service and the sequence of its steps. In addition, it raises the awareness of the services related to the corporate finance and the forms of each service such as the forms of dealing in company’s shares, the form of distributing the bonus shares of the shareholding company, the report form of dealing in the company’s treasury shares, and the form of approving the agenda of the of Bondholders or Sukukholders.
Through using the aforementioned electronic system that the CMA started its trial implementation stage on Thursday December 16th and will be extended until the 30th, it seeks to achieve several goals such as simplifying the procedures of dealing with the CMA, reducing the documentary cycle, maintaining confidentiality of information, facilitating the procedures of submitting the forms, and obtaining the services related to corporate finance and governance.

The Capital Market Authority in collaboration with the Union of Arab Securities Authorities held a training program on “Combating Financial Crimes in Financial Markets” in Beirut on the 18th and 19th of October 2017. The training program hosted by the CMA, was attended by more than thirty trainees from various regulatory bodies and custodians such as the Capital Markets Authority of Kuwait, Syrian Commission on Financial Markets and Securities, MIDCLEAR and Banque Du Liban. In addition, the attendance also included senior staff from the Beirut Stock Exchange and a number of financial intermediary institutions from Lebanon and Sudan.

The program aims to support and develop the knowledge and skills of the workers in the competent departments of the regulatory authorities and financial market institutions, which are responsible for detecting and prosecuting financial crimes. The trainers introduced to the attendees the latest global developments and methods of committing financial crimes in financial markets to ensure deterring violators and compensating victims.
The program discussed several subject such as the recent developments of financial crimes in the global financial market and the techniques to discover new financial crimes to support market oversight, in addition to the preparation of criminal prosecution files and the development of regulators’ role in combating financial crimes.
This program represents a part of the UASA Strategic Plan 2016 – 2020 approved by the UASA Board, in cooperation with the CMA last year. Within the framework of capacity building pillar, the plan aimed to hold series of training programs and workshops to contribute in developing the regulators’ supervisory capacities and to enhance the efficiency and effectiveness. In its turn, CMA and as part of its opening remarks promised the attendees to host a number of trainings per year as part of its mutual cooperation with the Union.

FRA warned of risks resulted from dealing with digital money -virtual currencies- and all related transactions in light of the fact that they are not subjected to the control of any entity inside Egypt. He added that virtual currencies constitute a manipulation of the official monetary system subjected to control and supervision and all that is related to anti-money laundering laws.
The Authority did not license or codify those digital currencies or any related products, and do not allow dealing or use them. The FRA considered that the calls to stimulate investors to enter into these types of transactions, based on the rise of these markets or to ensure the achievement of profitable returns which is a kind of misinformation subjected to legal liability.

In light of FRA’s role in protecting minority investors and contributing to the dissemination of investment culture and awareness, FRA’s Chairman revealed that the issuance of cumulative voting guide explained the concept of cumulative voting mechanism, its legal framework and its application, as well as the forms used to apply it.
FRA’s Chairman explained that the issuance of the guide represents one of the efforts exerted by the Authority to raise the awareness of companies whose securities are listed on the Egyptian Stock Exchange, in addition to the companies authorized by the Authority to practice one of the activities in the field of non-banking financial services. According to the amendment to listing and delisting rules that were issued mid of 2018, companies are required to include in their statutes the system of using cumulative voting to allow for proportional representation whenever possible, as a regulatory measure aimed at practicing good governance to develop and enhance market’s efficiency and reduce many related disputes.

FRA organized a joint explanatory session between FRA and the European Bank for Reconstruction and Development (EBRD). The session aimed at creating public awareness in the Egyptian market of the new short-term debt instruments. The session included a presentation of the regulatory and legislative framework prepared by the Authority. Many parties participated in the workshop namely; entities qualified to issue such bonds, eligible investors and entities operating in the field of securities and licensed by the Authority to promote and cover the subscription, these entities are responsible of checking the capital adequacy of the natural persons who make the subscription.

FRA stressed that transition to a green economy and sustainable development is not an option. It is necessary to meet the principles of sustainability in order to increase the flow of foreign investments in the Egyptian economy. In this respect, Egyptian financial institutions shall integrate the principles of sustainability in the operating systems, investment and management and transform it to a culture and daily practice and a decision-making tool within these institutions.
FRA pointed out that one of the most important strategic objectives stated in FRA’s comprehensive strategy for the development of non-banking financial activities 2018-2022 is to achieve sustainable development, which is one of the most important axes that the Authority's management is working on in the coming period. FRA has established a specialized Sustainability Unit. Also, FRA joined the United Nations initiative as a supporting body and is on its way to join the SIF Forum which includes 23 countries, to be the second Arab country in this forum. 

FRA host a workshop on "Standards of Professional Conduct and the Global Investment Performance Standards (GIPS)" hosted by FRA at its headquarters in Smart Village during the period 17-18 of this month in coordination with CFA Society Egypt. In the first day, attendees will discuss the problem of ethics and standards of professional conduct and shed light on the impact of bias on decision making, especially on investment decision making, with examples of interactive cases to understand how to overcome these ethical dilemmas.
The second day of the workshop will focus on the Global Investment Performance Standards (GIPS) in order to enhance integrity and transparency in the non-banking financial markets, with the participation of speakers from the "CFA Institute", highlighting the Global Investment Performance Standards (GIPS), the necessities that led to its application and development and understanding compliance requirements.

The dialogue within the events addresses understanding of the fundamental principles of full disclosure and fair representation of investment performance results in accordance with performance standards. In addition to shedding lights on the GIPS Advertising Guidelines.

 

Within the framework of implementing the comprehensive strategy for developing non-banking financial services sector (2018-2022), especially in “ its sixth axis on developing governance levels, strengthening regulatory capacities and protecting investors’ rights”,
FRA’s Chairman revealed that FRA has issued the first detailed Investor Protection Guide on dealing in Capital market, insurance, private insurance funds and multiple financing activities in Egypt.
FRA’s Chairman emphasized that after approving the issuance of “Investors Protection Guide” by decision no. 446 of 2019, companies and entities operating in non-banking financial activities shall comply with the principles set in the Guide. Also, all necessary measures shall be taken to publish the Guide and inform clients’ of their rights and obligations. The Guide shall be published on the home page of company’s websites and on their social networking platforms. In addition, companies shall clearly inform its clients on how to obtain and review Investor Protection Guide issued by the Authority in any document that includes the provision of financial service. Moreover, companies shall provide its clients with a printed copy of an explanatory note on Investor Protection Guide prepared by the Authority upon offering any financial , insurance or financing product under FRA’s supervision. An information poster of the most important principles stated in the Guide shall be set in the company and its branches and all other places that provide services to the clients.
He added that Investor Protection Guide represents a message of awareness and notifying the prospective clients of the basic protection principles which will be implemented in an intensive communication program aimed at reaching citizens through mass media, print and digital media at the beginning of next week to introduce these principles. The said principles include transparency, fair treatment, risk reduction, dispute resolution, complaints resolution and strengthening trust - in all details of each non-banking financial activity. The Guide also includes company’s obligations prior to contracting or benefiting from the service. On the top of these obligations are : honesty upon providing information , access to all information provided to the client, ensure that they understand them clearly, understand how to use financial product or service accurately and correctly. Besides, giving advice on not to buy any financial products or services that are not appropriate to their financial situation ,as well as their right to obtain copies of contracts and documents after signing them and keeping them in a safe place.
He emphasized that many economies rush towards providing and facilitating access to financial products and services in a timely manner and at an affordable cost to all segments of society , through using new technology in an active and accelerated manner , taking from the "financial inclusion" a headline ". Accordingly, regulatory bodies like – the Financial Regulatory Authority (FRA) takes the responsibility of protecting investors and spreading financial awareness for such categories. the Regulatory bodies become directly responsible of enhancing the credibility and trust in the non-banking financial sector activities. Besides, reducing any damage to clients’ interests as a result of the lack of sufficient and clear disclosure of the most important evidence and procedures, unfair transactions or risks of safety and confidentiality of data , in addition to digital fake offers that may subject to "doubt and anonymous.
FRA’s Chairman added that challenges facing regulatory bodies worldwide reached its peak after it was proved that more than 60% of the world's population used financial technology in their transactions in 2016 - according to the Global System for Mobile Communication. He noted that this action increased opportunities for integrating poor and marginalized, moving from the informal financial system to the formal financial system, allowing access to innovative types of financial products and services in a faster and more secure way available for all inpiduals.
FRA’s Chairman noted that investor protection file has become a "global trend" of great importance within the policies of different countries, in the light of the complexity of financial decisions in the financial markets, which currently characterized by complex financial products, where it is not easy for a large proportion of inpiduals to recognize its risks. In this respect, one of the priorities of FRA’s strategy for the next four years was to urgently seek to develop principles of investor protection within the framework of a balanced relationship that provides protection to investors in the capital markets, insurance, private insurance funds and financing activities of various types, providing fair treatment for all clients and enhancing transparency and trust in all financial transactions provided by institutions under FRA’s supervision.
He stressed that the first detailed Investor Protection Guide in the Egyptian market is consistent with best practices in many countries, international best practices and standards set for investors’ protection by international financial institutions such as OECD, UNCTAD and EU and the World Bank Report 2017 on Good practices for financial consumer protection.
He noted that investor protection is essential to ensure that they obtain the needed information to take informed decisions. Also, information must be clear and simple so that investors can understand it. On the other hand, financial service providers shall treat clients fairly and avoid any misguided practices. Financial service providers shall have responsible and professional conduct before, during and after providing financial services. They must be qualified and have the necessary qualifications and certificates to enable them to perform their role efficiently and distinctly.
FRA’s Chairman also stressed that clients have the right to resort to mechanisms - guaranteed by legislations regulating non-banking financial markets - to grieve and complain to resolve disputes arising from service providers. That is besides, other mechanisms to protect the privacy and confidentiality of personal information, as well as ways to ensure clients’ protection in cases of Bankruptcy of Financial Service Providers.
It should be noted that the set of principles included in this Guide is complementary and not an alternative to FRA’s decisions and rules related to investor protection. Financial institutions should take the necessary measures to implement the principles and controls in this Guide. If any of the stated principles contradicts the laws, the laws prevail.

 

In light of positive results occurred in the field of microfinance during the last four years and the achievements witnessed by the end of last year where the number of beneficiaries increased to more than 2.7 million citizens and the size of financing funds exceeded 11.5 billion pounds during 2018 which contributed to reducing unemployment. And within the framework of achieving the objectives of FRA’s comprehensive strategy of non-banking financial activities (2018-2022) to improve financial inclusion and develop capital markets in parallel with strengthening the legislative framework of non-banking financial sector,

FRA’s Chairman revealed that a series of meetings will be held to hear the views of representatives of NGOs and financial institutions on FRA’s proposal to amend Microfinance Law no. 141 of 2014. The new amendments to the Law shall match the developments revealed by the actual application of the law over the past four years regarding the need to increase finance value that may be granted to clients. In addition, the new amendments will provide a new finance ceiling for another category to facilitate the associations and civil institutions engaged in finance activity in light of the variables witnessed by the Egyptian economy.

FRA’s Chairman stressed the keenness of the regulator to listen to the viewpoints of those operating in non-banking financial markets , adding that the amendments to the existing legislations are often in response to the experience of professions associated with practicing non-banking financial activities. He pointed out that the specialized consultative committees formed in the Authority are studying all suggestions of those engaged in the markets.

In his meeting with trainees who have passed the first program on derivatives organized by Financial Services Institute, FRA’s Chairman said that the Authority is working hard to increase markets’ efficiency. He added that FRA is introducing new and advanced training programs and provided professional certificates in financial engineering in cooperation with scientific academic institutions to spread the idea of financial derivatives within the Egyptian economy.
The aim of introducing new non-banking financial instruments in the Egyptian market was to attract more investments and persify the financial instruments traded in the Egyptian market. Accordingly, this will broaden the base of choosing the most appropriate financing instrument for each institution according to their financial policies. FRA’s Chairman added that such new instruments are the main engines of FRA’s successive regulatory decisions since the beginning of this year in order to activate Futures Exchange which is one of the most important amendments to the Capital Market Law promulgated by Law No. 17 of 2018.
He explained that the implementation of the roadmap set by the Authority to activate Futures Exchanges shall be held either through licensing the establishment of a new entity “Futures Exchange” or through granting license to the Egyptian Stock Exchange to engage in the activity without the need to establish a company. He added that FRA’s roadmap included the procedures set for establishing and licensing Futures Exchange and the conditions to be met. He noted that technical cadres shall be trained and develop their skills to start Futures Exchange’s activity, that is through training courses and workshops applied to the scientific aspects of derivatives and methods of pricing and trading, in addition to defining the legislative and regulatory framework for conducting this activity.

 

The AMMC takes part in the WIW fifth edition to promote investors financial literacy.

The Dubai Financial Services Authority (DFSA) will be hosting the DFSA Cyber Risk Forum on 16 November 2021. The virtual forum aims to raise awareness about cyber risks and promote cybersecurity maturity amongst companies operating in or from the Dubai International Financial Centre (DIFC). The event is intended for everyone involved in, or responsible for, cyber risk management, including board members, senior management, IT professionals, cyber security experts, and risk and compliance officers.
This is the second edition of the event, first launched in November 2020, which reinforces the DFSA’s goal to promote the continued development of cyber risk capabilities in the DIFC, in line with the UAE’s National Cybersecurity strategy. The two-and-a-half-hour-long forum will include presentations and panel discussions from industry experts speaking about zero-trust architecture, the rising cyber threat to digital supply chains, the cyber threat landscape, and what financial institutions should be doing to prevent and respond to ransomware attacks.
Speakers at the forum will include specialists from the DFSA, Mastercard, Standard Chartered, Deloitte, SentinelOne, HelpAG, Citibank, the ADGM Financial Services Regulatory Authority, Kaspersky, Mandiant and Axon Technologies.
F. Christopher Calabia, Chief Executive of the DFSA, said: “Rapid growth in the digital economy makes cybersecurity a shared priority for every organisation. Events such as the DFSA’s Cyber Risk Forum emphasise the importance of partnership and collaboration across the industry and with supervisors. We encourage everyone in the DIFC involved in this subject to join us to share insight into emerging issues and best practices for mitigating cyber risks.”