Brokerage firms have begun notifying clients that the deadline to sign mandatory fund transfer pledges — shifting control of funds from the Kuwait Clearing Company to brokerage firms — is August 14, 2025.
This change stems from the new settlement system launched on July 13, which requires all investor funds to be managed by brokers through the central settlement bank system, reports Al-Jarida daily.
Sources revealed that while most active clients have already signed the pledges and are transacting smoothly, some inactive or seasonal accounts remain unsigned, putting them at risk of temporary suspension after the deadline.
Signing the pledge is legally binding, and no investor will be allowed to keep funds with the clearing company, whose role in fund custody has now officially ended. The transition is mandatory for continued access to the market.
To assist clients, some brokerage firms have created dedicated support units to ensure smooth onboarding, even reaching out to clients directly when necessary. This approach aims to maintain client confidence and ensure the success of the settlement system shift.
Meanwhile, sources confirmed that the new qualified mediator mechanism is progressing well, with ongoing coordination among market players to resolve any emerging challenges, laying the groundwork for future market reforms.
