Regulatory Alerts2016-01-01
Circular Letter No. (3) of 2016 Regarding Controls for Executing Transactions Where the Counterparty is the Brokerage Firm (The Referee)
The Egyptian Financial Supervisory Authority mandates that securities brokerage firms conduct all transactions with their employees exceeding 100,000 EGP through accounts at Central Bank-supervised banks, and require all dealings with foreign clients to use such accounts regardless of value. Brokerages must verify that purchasing clients deposit securities purchase funds into the firm's account and are prohibited from accepting seller-issued settlement statements except for specific intra-entity transfers, Egyptian share swaps, or Authority-approved cases. Firms must maintain organized records of these exceptions without prejudice to other Capital Market Law requirements, and this directive is published on the Authority's and Egyptian Exchange websites.