Boursa sees surge in suspended portfolios

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KUWAIT CITY, Feb 11: The Kuwait Stock Exchange has seen a rise in the percentage of suspended portfolios despite an increase in the overall number of investment portfolios since the beginning of the year. Currently, suspended portfolios account for 37%, with the remaining 63% active, reports Al-Jarida daily. According to reliable sources, there are currently 1,619 suspended investment portfolios out of a total of 4,339 active portfolios. These suspensions can be attributed to various factors, including personal decisions by portfolio managers, disciplinary actions taken by the Disciplinary Board, or scrutiny by the Capital Markets Authority for violations. The prevalence of manipulative practices in the stock exchange has heightened concerns among traders, leading many to prefer institutional channels for investment rather than managing portfolios independently to mitigate potential risks and errors.

There are concerns regarding the conduct of some investment companies managing portfolios, with reported violations including unauthorized transfers of funds from clients’ bank accounts, failure to follow established procedures for managing investment portfolios, and discrepancies in reconciling client accounts. Additionally, some companies have failed to disclose commissions charged for portfolio management services, violating regulations governing fee structures and client communication. Regulatory requirements mandate portfolio managers to submit periodic reports to the Capital Markets Authority, detailing portfolio creation and closure, executed trades, and personnel involved. The implementation of an automated reporting system through the electronic portal of the Capital Markets Authority has improved oversight and operational efficiency in the financial market.

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