Regulatory Alerts2026-06-23
Regulatory Bylaw No. 9 Financial Disclosure for Financial Brokerage Companies
The Iraq Securities and Exchange Commission issued Bylaw No. 9 in 2022 to mandate strict financial disclosure and reporting timelines for financial brokerage companies. The regulation requires the submission of annual reports, quarterly financial statements, monthly audits, and weekly account statements within specified deadlines. Non-compliance triggers immediate suspension of trading activities and imposes escalating financial penalties ranging from 25,000 to 250,000 Iraqi Dinars depending on the type and duration of the delay.
Regulatory Bylaws of the Securities and Exchange Commission 2022 Regulatory Bylaw No. (9) Financial Disclosure for Financial Brokerage Companies
Article (1) The company must submit the information form according to the attached model approved by the Commission. In the event of any changes, the company must notify the Commission within a period not exceeding 20 working days from the beginning of the year and within (5) working days from the date of the changes.
Article (2) The annual report must be submitted within a period not exceeding 90 days from the end of the previous financial year and includes: a. Management report on the company's activities and the outlook for the following year. b. Annual audited financial statements audited by a legally authorized auditor, ensuring that the current year is compared with the previous year and includes: First: General balance sheet. Second: Income statement. Third: Cash flow statement. Fourth: Detailed statement of debtors, creditors, and the investment portfolio. Fifth: Notes attached to the financial statements. c. Auditor's report.
Article (3) The quarterly financial statements must be submitted within a period not exceeding 30 days from the end of the quarter, compared to the corresponding period of the previous year, and include: a. General balance sheet. b. Income statement. c. Notes attached to the financial statements.
Article (4) The monthly audit must be submitted within a period not exceeding fifteen days from the following month.
Article (5) Weekly statements must include the following: a. Analysis statement of debit balances. b. Analysis statement of credit balances. c. Statement of the securities portfolio.
Article (6) The company must disclose any material events affecting the continuity of its operations, including litigation and others, immediately and within a period not exceeding three working days.
Article (7) Penalties: a. Annual Report: First: The company's activity is suspended from the market starting from 4/1 of each year in case of non-compliance with annual disclosure requirements. Second: The company is allowed to resume its activity after submitting its financial data and paying a fine of 250,000 (Two hundred and fifty thousand) Dinars for each month of delay or part thereof. b. Quarterly Report: First: The company is suspended from trading in the market in case of delay in submitting the quarterly report for more than fifteen days from the end of each quarter. Second: The company is allowed to resume its activity after submitting the quarterly report and paying a fine of 100,000 (One hundred thousand) Dinars for each month of delay or part thereof. c. Monthly Audit: First: The company is suspended from trading in the market in case of delay in submitting the monthly audit for more than fifteen days from the end of each month. Second: The company is allowed to resume its activity after submitting the monthly audit and paying a fine of 50,000 (Fifty thousand) Dinars for each month of delay or part thereof. d. Weekly Report: A fine of 25,000 (Twenty-five thousand) Dinars is imposed in case of delay in submitting the weekly disclosure for the day following the previous week.
Article (8) a. In case the information form is not submitted within the specified time in Article (1) above, the company is fined 100,000 (One hundred thousand) Dinars. b. In case the failure to submit the form continues for a period of 3 months, the company is suspended from trading in the market.