As part of the efforts of the Union of Investment Companies (UIC) to support employees in the investment sector and enhance their commitment to best professional practices, UIC, through its training arm - the Investment Studies Center (ISC), organized a training program on "Disclosure and Transparency Provisions A theoretical & practical study in light of the provisions issued by the Disciplinary Board", on 15th & 16th December 2024, at UIC premises, where the program was presented by Counselor Amr Hafez - First Deputy - Head of the Legal Department at Kuwait Financial Centre S.A.K.C., and a member of the Legal Committee of UIC.
In this context, UIC stated that the program aimed to provide a comprehensive explanation of the "Guidelines for Disclosure and Transparency Provisions", in accordance with the provisions of Law No. (7) of 2010 regarding the establishment of the Capital Markets Authority and the regulation of securities activity and its executive regulations. This program comes within the framework of the Union's keenness to enhance the performance of financial markets and raise the level of transparency in them, by establishing disclosure standards and achieving regulatory compliance, which contributes to reducing violations and supporting the stability of the investment environment.
The training program focused on key axes that are a fundamental pillar in enhancing awareness of the importance of disclosure and transparency among employees of listed companies and investment companies. The program addressed the philosophy of disclosure of interests as one of the essential foundations for achieving credibility and transparency in financial markets. It also provided a definition of stakeholders in disclosure, whether they are direct or indirect parties.
The program delved into discussing the types of disclosure, highlighting the difference between mandatory disclosure stipulated by laws and regulations, and voluntary disclosure that reflects companies' keenness to enhance trust with investors. It also demonstrated the role of transparency in protecting market participants by highlighting essential information that influences their investment decisions.
The program also addressed the responsibilities of listed companies and their importance in reducing the misuse of inside information, by clarifying the responsibilities of insiders in terms of their dealings on securities whose confidential information they have accessed, while highlighting the periods of prohibition, the conditions for dealing during the prohibition, and the exceptions stipulated in accordance with applicable laws.
Among the important topics covered by the program were disclosure of collective investment systems, disclosure in cases of multiple interests, in addition to disclosure of the group, which includes subsidiaries and companies that are actually controlled. The obligations of the stock exchange and its role in regulating disclosure processes to ensure integrity and transparency in the market were also explained.
The program devoted an extensive section to defining material information, focusing on what it means, the timing of disclosure, and cases of delaying disclosure. It also addressed how to respond to rumors and circulating news, in addition to dealing with unusual trading activity, and mechanisms for disclosing material information in accordance with regulatory controls.
The program concluded by providing the necessary instructions for filling out the disclosure forms required in accordance with the provisions of the Executive Regulations of the Capital Markets Authority.
In this context, the Union of Investment Companies is keen to enhance the role of companies in complying with regulatory standards, by raising awareness of their responsibilities towards publishing the disclosure of material information through approved websites, in addition to adhering to transparency rules to ensure the stability of financial markets.
The training program reflects the Union’s commitment to providing an integrated professional environment that contributes to qualifying cadres working in investment companies by enhancing awareness of regulatory and supervisory standards, thus enhancing the efficiency of institutional performance and supporting the competitiveness of financial markets to achieve sustainable economic growth.