Regulatory Alerts2017-01-01
Decision of the Board of Directors of the Authority No. (84) of 2017
The Egyptian Financial Supervisory Authority (EFSA) issued Decision No. (84) of 2017 to amend Articles Three and Five of its previous Decision No. (61) of 2017 regarding the protection of client accounts at securities companies. The amended Article Three mandates that resident clients must open accounts and execute transactions directly, prohibiting general powers of attorney for account opening or margin and same-day trading unless fully paid, while permitting foreign and expatriate clients to authorize representatives with authenticated documents. The revised Article Five standardizes dividend and return distribution to direct bank transfers, specific checks, or dedicated cards, and explicitly permits custodians and margin brokers to offset client dividends against margin debts or custody fees, subject to explicit contractual clauses and mandatory declarations to the Central Depository and Clearing Company.