(MENAFN - Kuwait News Agency (KUNA)) It is essential to enable smoother and easier trading among Arab stock markets and interaction among Arab monetary systems and to tighten supervision and legislation regulating this field, said President of the Capital Markets Authority (CMA) Saleh Al-Falah here addressing a specialized meeting, Sunday.
The official was addressing the seventh session of the Union of Arab Securities Authorities (UASA), and he stressed the Arab region is before great changes that bring about great challenge, which requires coordination and joint effort as well as unification of standards and legislation. We are in need, he said, of flexible while specific guidelines and mechanisms, as well as transparency and foresight to prepare for possible hurdles and avoid crises and disruptions.
Al-Falah said Arab securities authorities need to improve their transparency, data announcement, governance, and related systems. The performance of markets hinges upon the adequacy of legislation and of implementation mechanisms and on efficiency of follow up and supervision mechanisms.
When it comes to data issued, he noted the purport as well as timing of data is critical to investors' decision-making. Studies indicate many impediments to transparency in Arab markets, he continued, including inadequacy of legislation relating to separating the legislative role of state-appointed market authority from the executive role of market management. There is also lack of financial and administrative independence.
Other impediments relate to absence of binding regulations that require companies to heed accounting and auditing criteria, demands of transparency, and absence of legislation regarding credentials and professional requirements for auditors accountants, and there is also absence of professional criteria for brokerage firms and staff.