Updating Client Data: Necessity or Bureaucracy?
Investors demand data updates every 3-5 years and the use of technology.
Translated by Qiyas from الجريدة — Original source
As individual investors struggle with the burden of updating their data with brokerage firms or face the suspension of their trading accounts, many are complaining that the data remains unchanged, noting that the brokers’ demand for customers to review their information appears illogical and more akin to bureaucratic red tape, especially given that the market hosts over 476,000 trading accounts.
Sources familiar with the matter clarified that trading accounts must remain active and unfrozen, particularly to prevent customers from being unable to access their funds or assets at any time decided by the investor.
The sources questioned why data updates are not required every three or five years, especially since there have been no changes to the data.
Furthermore, they added that companies should develop a technological mechanism to communicate with clients for data updates or signing any subsequent contracts or addenda, using authentication via the “Huwiyati” app.
Investors in the stock market are wondering about the benefit of technological advancement and the adoption of electronic signatures, while companies continue to summon clients for in-person reviews.
In contrast, there are companies in the market that have not updated their ownership data since 2019. Why are small investors and shareholders being compelled to update their information annually, while some companies have gone more than seven years without updating their data?
Investment sources noted that some ownership structures or company data have not undergone any changes, applying the same logic to clients: there are no significant changes to any data!
In this regard, the sources called for strengthening and expanding the use of technology in all financial market transactions to facilitate processes for clients, enhance the flexibility of capital circulation, and maintain the validity of accounts. This is particularly important because, throughout the year, distributions from some companies are received as grants or cash, and some of these events involve shareholder movements, often linked to shareholding deadlines. Additionally, there are subscriptions for capital increases, and more than three public offerings are ready for launch but are awaiting the completion of certain procedures.
