The official rollout of the ‘qualified broker’ system kicks off Sunday, marking a major shift in Kuwait’s financial market infrastructure.
A key component of the new system, according to Al-Jarida daily, is a mandatory authorization form that allows brokerage firms to access client funds held with the Kuwait Clearing Company (KCC).
However, the sources clarified that failing to sign the authorization will not invalidate a trading account, but, clients who do not sign will not be able to utilize their liquid assets to buy or sell, as their trading balance will appear as zero. Only clients with a stock balance from previous transactions will be able to trade, and only within that existing balance.
The sources urged all traders and investors to sign the authorization promptly, enabling the transfer of funds to their trading balances. This move ensures they can make full use of their existing liquidity to seize market opportunities.
Brokerage firms, the sources added, have intensified communication through all available channels to stress the importance of the authorization and clarify that brokers are not responsible for restricted fund access if the authorization isn’t signed.
Signing can be done electronically 24/7, provided the brokerage firm offers digital services. Several companies have formed emergency task forces to support the transition and ensure a smooth launch with no technical disruptions. In parallel, the banking sector is coordinating extensively to support the implementation and integration.
The upcoming settlement cycle on Tuesday and Wednesday will reflect the new system. For clients who have signed the authorization, transferred liquidity will appear directly in their trading accounts, thanks to full integration with bank systems.
Sources highlighted that the qualified broker system represents a significant step forward for Kuwait’s capital market, ushering in greater efficiency, transparency, and flexibility in financial transactions.
It is expected to catalyze growth in brokerage services and enable the development of new, modern financial instruments.
Final tests and system reviews conducted last week confirmed the platform’s high readiness and technical capability for seamless implementation.
