Regulatory Alerts2008-06-26
Instructions on the Organization of Third-Party Portfolio Management
The Central Bank of Kuwait issued revised instructions and clarifying circulars to regulate how local banks and investment companies manage third-party portfolios. The regulations transfer supervision of local securities trading to the Kuwait Stock Exchange while limiting the Central Bank’s oversight to foreign portfolios, and mandate strict segregation of customer funds into independent accounts alongside clear investment policies and professional staffing. Additionally, managing parties must maintain detailed accounting records, obtain prior written consent for related-party transactions, and submit quarterly reports on marketed foreign investment funds.
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