Investment sources said the process of updating the data of the clients of the brokerage companies operating in the Kuwait Stock Exchange, who hold dormant trading accounts, or those whose data is required to be updated has resulted in the freezing of the funds of a number of dealers and managers of private financial portfolios for more than a year are suddenly unable to obtain the result of sales they executed on shares they previously owned based on the directives of the regulatory authorities.
The sources told Al-Rai the concerned authorities, including the Kuwait Clearing Company, ask brokerage firms to update the data of dormant account holders periodically for periods ranging from 6 months to a year, to determine the accuracy of the information in anticipation of errors or abuses and violations that endanger the system, but sudden requests to update the statements of many accounts, despite their valid reasons, caused a crisis for a not small segment of investors, specifically those who were unable to come to the headquarters of brokerage firms in the stock exchange for reasons of travel, illness or others.
The sources confirmed there are thousands of accounts, whether dormant or those affected by sudden update requests, which contain amounts and assets in millions of dinars, are now frozen, noting that some citizens who own trading accounts have been outside the country since before the Corona pandemic, cannot trade ‘online’. They have also been accustomed to this for many years, but due to the failure to update their data, as the responsible authorities require the presence of the trader in person has disrupted trading.
While those affected demanded the necessity of solving the problem they are facing so that they can restart their accounts or receive their frozen funds, the sources reported that brokerage companies are exposed to wholesale problems in light of their responsibility to follow up the update and communicate with customers who express their dissatisfaction with this matter, as an official in one of the companies says, “There are shareholders in companies that were listed a while ago, including (Shamal Al-Zour) and (the Stock Exchange) are required to update their data, knowing that they recorded the required information with supporting documents when subscribing to those companies, but they are currently exposed to the same problem.”
The sources indicated that the developments in the financial markets require accelerating the wheel of transactions and shifting from paperwork to electronic, which calls for an understanding of the conditions of investors who are unable to attend for many reasons.
The sources pointed out that clarifying the source of income and providing the necessary papers and documents is also a point of discussion between brokers and their clients, as the regulatory authorities are required to provide proof of the amount of funds available in the traders’ accounts, pointing out that the client must submit documents, including the salary certificate if he is an employee, or transfer notices and the like with his signature on declarations confirming the accuracy of the recorded data, but the regulatory authorities sometimes request real estate ownership documents.
