Regulatory Alerts2021-01-01
Board of Directors Decision No. (8) of 2021 dated 31/1/2021 regarding the conditions and procedures for licensing the activities of Central Depository and Central Registration of Government Securities and Financial Instruments
The Financial Regulatory Authority (FRA) of Egypt issued Board Decision No. (8) of 2021 to establish the mandatory conditions and procedural requirements for licensing companies to conduct central depository and central registration activities for government securities and financial instruments. The decision mandates a minimum paid-up capital of 50 million Egyptian pounds, restricts the corporate purpose to these specific activities, and requires qualified board members, a Managing Director with at least ten years of relevant financial experience, and a minimum organizational structure comprising clearing, finance, risk management, and internal audit departments. Furthermore, it outlines the application submission process, mandates compliance with corporate governance and anti-money laundering regulations, and stipulates a 100,000 Egyptian pound licensing fee alongside a thirty-day review period for complete applications.