Regulatory Governance

Regulatory governance is the organizational framework of a business entity, which ensures sound and prudent management effectively and transparently, ensuring balance between the stakeholders’ interests.

What Are the Regulatory Governance Frameworks in the State of Kuwait?

The regulatory authorities in the State of Kuwait, i.e. the Central Bank of Kuwait (CBK), Capital Markets Authority (CMA), and Insurance Regulatory Unit (IRU), have issued corporate governance regulations as outlined below:

1. Corporate Governance Regulations issued by Central Bank of Kuwait:

   The Central Bank of Kuwait issued Instruction No. (2/BS/ IBS/284/2012) dated 20 June 2012 to all Kuwaiti Banks regarding the Corporate Governance Rules and Systems in Kuwaiti Banks, as amended by Circular No. (2, BS, IBS/446/2019) dated 15 September 2019 to all Kuwaiti Banks regarding Updating the Corporate Governance Rules and Systems in Kuwaiti Banks, which include the corporate governance rules and requirements to be implemented by banks and financial institutions.

2. Corporate Governance Regulations issued by Capital Markets Authority:

   The Capital Markets Authority issued Resolution No. 72 of 2015 dated 09 November 2015 regarding the Issuance of the Executive Bylaws of Law No. 7 of 2010 concerning the Establishment of Capital Markets Authority and Regulating Securities Activities, Module 15 “Corporate Governance”, which includes the corporate governance rules and requirements to be implemented by listed companies and CMA-licensed companies.

3. Corporate Governance Regulations issued by Insurance Regulatory Unit:

   The Insurance Regulatory Unit issued Resolution No. 58 of 2023 dated 06 November 2023 regarding the Issuance of the Corporate Governance Rules, which includes the corporate governance rules and requirements to be implemented by insurance and reinsurance companies.

4. Corporate Governance Regulations in the State Administrative Apparatus:

   In 2021, the General Secretariat of the Supreme Council for Planning and Development issued the “National Guide for Corporate Governance in the Administrative Apparatus”, which provides the employees of government sector with a well-structured approach to implementing the corporate governance principles in different governmental bodies, e.g., ministries, government administrations, authorities, institutions and independent agencies with dependent budgets.

5. Corporate Governance Regulations Issued by the Ministry of Social Affairs and Labor, Mandatory for Charitable Associations

   On 29 June 2025, the Ministry of Social Affairs and Labor issued a set of regulatory controls governing charitable work in the State of Kuwait, which obligate charitable associations to adhere to a range of requirements aimed at enhancing corporate governance in the management of their operations. These include, but are not limited to, the presence of a documented organizational structure with defined organizational authorities that clarify responsibilities, enable accountability, activate independent financial auditing of financial statements, activate internal audit functions, and implement risk management practices. The Ministry also mandated the creation of a Compliance Officer role to ensure that charitable associations adhere to the regulations of the Ministry of Social Affairs and Labor.

What are the significant systems required as per regulatory governance regulations?

Regulatory governance regulations require establishing a set of systems including the following:

• Developing an organizational structure
• Developing a job structure
• Developing job descriptions
• Developing processes, policies and procedures manuals
• Developing an administrative and financial authority matrix
• Developing charters binding on the organizational units

What is the added value to business entities from Corporate Governance Consulting Services?

• Ensure that regulatory compliance is achieved including compliance with laws, regulations, resolutions, rules, and instructions issued by the regulators;
• Ensure compliance with the up-to-date international standards and practices, which are relevant to the entity’s business activities;
• Promote the stakeholders’ confidence in the business entities and enhance its reputation in the marketplace where they operate; and
• Utilize the expert knowledge and experiences brought through compliance consulting services.

What are the services offered by Baker Tilly Kuwait?

• Preparing/ updating organizational structures as per the regulators’ requirements
• Preparing/ updating job structures as per the regulators’ requirements
• Preparing/ updating job descriptions as per the regulators’ requirements
• Preparing/ updating processes, policies and procedures manuals as per the regulators’ requirements
• Preparing/ updating charters binding on the organizational units as per the regulators’ requirements
• Preparing/ updating administrative and financial authority matrix
• Preparing Corporate Governance Report as per CMA requirements

Why Baker Tilly?

1. Baker Tilly in Kuwait is a member of Baker Tilly International network based in the UK, ranked amongst the top 10 global accounting networks.
2. Extensive experience in providing Regulatory Governance Consulting Services to companies operating across various business sectors in the State of Kuwait.
3. Highly experienced bilingual team with specialized academic qualifications and professional certifications.
4. Commitment to performing Regulatory Governance Consulting Services engagements according to predefined timelines with no delays, and responsiveness to client requirements.