KUWAIT CITY, Feb 6: The Capital Markets Authority (CMA) says it has uncovered significant violations involving a foreign exchange brokerage firm operating through external brokerage companies, reports Al-Jarida daily. The violations primarily revolve around discrepancies between customer transaction records and their corresponding accounts. The company failed to reconcile these records and accounts, resulting in a disparity between the amounts recorded internally and those held in customers’ bank accounts and third-party accounts used for executing orders.
The violations also extend to the transfer of cash amounts from clients’ wallets to the company’s bank account without proper documentation, as well as the failure to reconcile records with external parties, such as financial brokerage firms. These firms hold private accounts for executing client transactions in securities, further exacerbating the inconsistencies within the company’s internal records. The company’s activities encompass providing trading services and tools across various financial markets, including Forex, precious metals, stocks, indices, commodities, and energies. Additionally, it offers market information and analyses to trading clients and investors.
The Capital Markets Authority is committed to enforcing securities laws and regulations, ensuring accountability for all market participants. Consequently, the companies involved have been referred to the Disciplinary Board for appropriate penalties, aiming to restore investor confidence and foster a transparent and trustworthy investment environment aligned with international best practices.
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