Regulatory Alerts2020-01-01
Circular Letter No. (5) of 2020 on Compliance with the Standard Margin Trading Purchase Contract Model
The Financial Regulatory Authority (FRA) of Egypt mandates all licensed companies and entities conducting margin trading purchase operations to strictly adhere to the Authority's official Standard Margin Trading Purchase Contract Model. This directive requires the immediate nullification of any contractual clauses that contradict the standardized model, except where such additions explicitly benefit the client. The requirement is issued to enforce Law No. (95) of 1992, ensure market transparency and competition, and rectify observed violations of margin trading agreement terms during regulatory oversight.
Financial Regulatory Authority
FINANCIAL REGULATORY AUTHORITY
Deputy Chairman of the Authority
Circular Letter No. (2) of 2020
Dated 31/3/2020
Regarding Compliance with the Standard Margin Trading Purchase Contract Model
In light of the Financial Regulatory Authority's commitment to fulfilling its supervisory role over non-banking financial markets, and applying legal provisions to ensure competition and transparency, thereby enhancing the efficiency of the non-banking financial sector.
And within the framework of the optimal implementation of Law No. (95) of 1992, its executive regulations, and decisions issued pursuant thereto.
And given the findings from the Authority's supervisory and regulatory oversight, which have revealed violations of the terms of the margin trading purchase agreement contract.
Therefore, the Authority hereby emphasizes, urging all companies and entities licensed to conduct margin trading purchase operations, to strictly comply with the Standard Margin Trading Purchase Contract Model issued by the Authority in this regard, in accordance with legal provisions. Any additional clause that contradicts this model must be nullified, unless the added clause is in the client's favor.
Dated: 2/3/2020
Deputy Chairman of the Authority
Judge / Khaled El-Nashar
Financial Regulatory Authority
FINANCIAL REGULATORY AUTHORITY
Smart Village, Building 167, Giza, Egypt
Postal Code: 110
Telephone: +202 3545750
Fax: +202 35370066
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