Regulatory Alerts2014-01-01
Prime Minister's Decree No. 1576 of 2014
The Prime Minister of Egypt issued Decree No. 1576 of 2014 to establish an independent, non-profit Investor Protection Fund against Non-Commercial Risks to safeguard clients of securities market participants. The decree mandates mandatory membership for all licensed securities firms, outlines a contribution structure based on 0.001% of annual activity volume with a minimum threshold, and defines a governance framework comprising a board of directors with investor, exchange, and expert representatives. It further stipulates coverage limits of up to 500,000 EGP per client for losses due to member bankruptcy or fraud, establishes a 15-day claims adjudication process, and restricts fund investments to low-risk instruments like bank deposits, government bonds, and highly rated securities to ensure liquidity for compensation payouts.