Regulatory Alerts2017-01-01
Decision No. 61 of 2017 of the Board of Directors of the Authority Regarding Procedures to Enhance the Protection of Clients' Accounts with Securities Market Companies
The Egyptian Financial Regulatory Authority issued Decision No. 61 of 2017 to mandate enhanced protection measures for clients' accounts held by securities brokerage firms, portfolio managers, and custodians. The regulation strictly prohibits the use of general powers of attorney for opening accounts or executing margin and same-session trades, requires the renewal of trading authorizations every five years, and establishes clear procedures for classifying, suspending, and reactivating dormant accounts. Furthermore, it standardizes dividend distribution methods, assigns monitoring and audit responsibilities to internal and committee structures, and sets a compliance deadline of July 1, 2017, with full repeal of outdated powers of attorney by January 1, 2018.