Regulatory Alerts2010-01-01
Circular Letter No. 6 of 2010
The Egyptian Financial Supervisory Authority issued Circular Letter No. 6 of 2010 to impose strict compliance requirements on brokerage firms regarding client orders initiated by banks. The directive mandates that brokerages must obtain a formal declaration from the bank detailing the client's identity, authorized representatives, and the scope of their authority before executing any trades. Furthermore, brokerages must verify that the underlying bank-client contract permits stock exchange transactions and ensures adherence to anti-money laundering laws and their executive regulations.
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