The Independence of the Capital Markets Authority in Light of the Provisions of the Kuwaiti Constitution and Relevant Legal Texts (Part 2)
Dr. Bilal Aql Al Sanadid
Associate Professor of Public Law – Kuwait International Law School – Adviser to the General Secretariat of the Kuwaiti Council of Ministers
The first part of the study emphasized the important role of the Capital Markets Authority (CMA) as an independent public authority in light of the specificity of the Kuwaiti decentralization. Thus, it was appropriate for explaining the authority’s specialization in the field of securities market regulation, because of the direct effects on the Kuwaiti economy. It was highlights the way work is managed in the authority and the value system that it follows. In an attempt to follow the specialized framework of the authority as an economic public utility, it was necessary to address the work of this entity from the constitutional and administrative aspects. The study required conducting research into the extent of its independence by answering questions raised regarding the scope of the margin through which it exercises its specialization and the reporting authority in managing its affairs. This entails rightful inquiries regarding the extent of the authority’s relationship with the regulatory agencies and the extent of the guardianship’s political responsibility for its works.
In the context of the same analytical descriptive approach followed in the first part of the study, we continue in the second part through addressing the dimensions of the readings and indications of Law No. 7 of 2010 regarding the establishment of the CMA and the Regulation of Securities Activities, through referring to the most prominent relevant judicial applications, jurisprudential opinions and texts revolving around the administrative and financial independence of the specialized public utilities and the methods of financial and political control over them. Based on the foregoing, the first section of the second chapter sheds light on the most prominent features of the CMA’s independence functionally, financially, administratively and legally. Then, we explore in the second section the narrow margin of political responsibility that the competent minister bears in his exercise of the duties of guardian control over the work of the CMA.
Keywords: structural decentralization, functional specialization, financial and administrative independence, administrative guardianship, political responsibility.