Regulation and Supervision of Kuwait Capital Markets

Regulation of the financial markets requires a clear plan articulating how to financial regulators will allocate limited resources to highest risk areas. Each financial regulator has bring their own cultural views to the job of protecting the integrity of the markets. This research investigates Kuwait Capital Markets Law No.7 of 2010 and its effectiveness in providing adequate supervision and enforcement to prevent insider trading. Using a risk-based approach allows efficient analyses of the available data. Creating a new, risk-based framework to address the regulation of Kuwaiti capital markets and to formulate financial regulations that are sufficient and appropriate is an efficient and productive approach to much-needed regulatory reform. It also compares the Kuwaiti approach with the UK approach and IOSCO standards tore veal the weaknesses in Kuwait legal system. With these weaknesses in mind, better regulations to protect the markets can be promulgated. Elite interviews have been conduction this research to fill gaps in the literature and review and validate the research findings.