Title: The Capital Markets Authority Holds Workshop on Passporting of Investment Funds

Kuwait, January 21, 2025 - Coinciding with the entry into force of Passporting of investment funds at the beginning of this month, in a new step towards integrated Gulf markets, the Capital Markets Authority (CMA) today held an awareness workshop on Passported Funds, targeting all persons licensed to practice the activity of a collective investment scheme manager or a Subscription Agent (sale). This step comes after the approval of the Capital Markets Authorities in the Gulf Cooperation Council (GCC), during the twenty-ninth meeting of the Committee of Heads of Capital Markets Authorities, of the Regulatory Framework of Passporting and Passporting Regulations of investment funds between member states.

The workshop, organized by the CMA, addressed the definition of Passporting and the regulatory entities involved (Registering Entity - Host Regulatory Entity), explaining the benefits of this step, which include the free movement of Gulf capital, integration of the Gulf markets, expanding the clients base, and opening up new investments, as well as marketing funds in all GCC countries without the need to apply for a license in each country separately, thus saving time and effort. The workshop also explained the steps for activating Passporting for local funds licensed by the CMA and GCC funds subject to one of the Regulatory Entities, and clarified the requirements for the entry of GCC funds into the State of Kuwait, which is through marketing by a person licensed by the CMA and a private placement for professional clients only and through Financial Promotions in accordance with the controls.

In a related context, the CMA's fees for Passporting were explained, and amendments to the annex of the articles of association for local funds and the prospectus of the Passported Fund for GCC funds were reviewed. It should be noted that the Passporting Regulations project is an important part of the comprehensive integration strategy for financial markets in the GCC countries, which aims to enhance cooperation between member states and facilitate the cross-border movement of investments. These Regulations represent a pioneering step in regulating the registration and marketing of investment fund units, to be the first financial product to be regulated according to a unified framework adopted at the regional level, reflecting the Gulf countries' commitment to developing an integrated and safe financial environment.

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Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance regulations, and protect investors from unfair practices which violate the CMA's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 1888898
Email: pr-media@cma.gov.kw