The Prohibition of the Exploitation of Confidential Information in Financial Market Transactions: A Study Under Kuwaiti and Comparative Laws (Part Two) – Responsibility for Breaching the Obligation to Disclose

Dr. Mansour Al Saeed
Associate Professor of Commercial Law – Department of Law – College of Business Studies – PAAET – Kuwait

Dr. Adel Al Mayyas
Assistant Professor of Commercial Law – Department of Law – College of Business Studies – PAAET – Kuwait


This part of the study aims to define the criminal, civil and administrative liability that results from the insider’s exploitation of confidential information and the authority of Capital Markets in combating this phenomenon, in addition to identifying the efficiency of legislation and rules regulating Capital Markets in limiting the phenomenon of exploiting confidential information. In the following three sections we focus on the criminal responsibility, the civil liability and the administrative liability, respectively.
The Kuwaiti legislator imposed criminal protection on the obligation to prohibit the exploitation of confidential information. Accordingly, the criminalization of breaching this obligation is explicitly stated in Article (118) of Law No. 7 of 20210 regarding the establishment of the Capital Markets Authority and the regulation of securities activities. Moreover, those harmed by the breach of the obligation to disclose has the right to seek compensation, in accordance with the provisions of civil liability. The provisions prohibiting the exploitation of confidential information impose administrative responsibility on the perpetrator according to the competent administrative authorities.

Keywords: Confidential Information, Insider Misdemeanor, Information Exploitation, Insider, Confidential Information Protection.

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