CMA prevents individual institutions from creating investment portfolios

Measures serve to raise confidence of investors

KUWAIT CITY, Oct 17: The Capital Markets Authority (CMA) has amended the requirements for categories that wish to create investment portfolios for securities, as it has prevented individual institutions from creating investment portfolios, reports Al-Jarida daily.

The Authority kept the rest of the requirements that the authorized person must manage the investment portfolios of securities, as they are, which came as follows -- not to establish investment portfolios for his benefit with another authorized person, with the exception of portfolios established with another authorized person to invest in foreign markets, as well as the investment portfolio pledged as a guarantee for one of the banks, and there was agreement between the two parties to the portfolio contract and the bank to manage the investment portfolio, and trading its components with the knowledge of the other authorized person.

Securities

This is in addition to not creating investment portfolios for the securities of individual institutions; not to conclude internal deals between the investment portfolios that he manages; the investment portfolio manager is prohibited from buying or selling treasury shares in a portfolio owned by the company issuing the shares and taking into account that the persons in charge of managing investment portfolios should not occupy positions in the boards of directors or the executive body of authorized persons.

Informed sources told the daily that individual institutions do not have a legal personality independent of their owner, and their investment account can be registered in the name of the owner of the institution, the natural person.

The sources added that the au

thority’s decision to prevent individual institutions from establishing investment portfolios will prohibit them from opening investment

accounts for individual institutions, pointing out that individual institutions often specialize in areas far from the financial

Kuwait relief campaign members with Canadian clinic manager and embassy official.