Regulatory Alerts2019-01-01
FRA Board Decision No. 76 of 2019 Amending Decision No. 194 of 2018 on Voluntary Suspension of Securities Companies' Activities
The Financial Regulatory Authority (FRA) of Egypt issued Board Decision No. 76 of 2019 to amend Decision No. 194 of 2018 regarding the voluntary suspension of securities companies' activities. The amendment mandates that the FRA Board will only suspend a company's operations after verifying four specific documents: provisional suspension minutes from the Ordinary General Assembly, proof of newspaper publication, a contemporaneous financial statement, and an auditor-and-board report confirming full discharge of client obligations. Furthermore, the revised text clarifies that renewing a suspension period requires only updated assembly minutes containing a declaration that no new liabilities arose during the initial suspension.
General Authority for Financial Supervision
Financial Regulatory Authority
Chairman of the Authority
Decision of the Board of Directors of the General Authority for Financial Supervision
No. (76) of 2019 dated 2019/6/20
Regarding the Amendment of the Authority's Board Decision No. (194) of 2018
Regarding the Conditions and Regulations for the Voluntary Suspension of Activities of Companies Operating in the Securities Field
Board of Directors of the General Authority for Financial Supervision
Having reviewed the Law No. 159 of 1981 on Joint Stock Companies, Limited Partnerships by Shares, Limited Liability Companies, and Single-Person Companies, and its Executive Regulations;
and the Capital Market Law No. 95 of 1992, its amendments, Executive Regulations, and decisions issued pursuant thereto;
and Law No. 10 of 2009 concerning the regulation of supervision over non-banking financial markets and instruments;
and Presidential Decision No. 192 of 2009 issuing the Basic Statute of the General Authority for Financial Supervision;
and the Authority's Board Decision No. 194 of 2018 concerning the conditions and regulations for the voluntary suspension of activities of companies operating in the securities field;
and the approval of the Authority's Board of Directors in its meeting held on 2019/6/20;
Decided
Article One
The following text shall replace Article Four of the aforementioned Board Decision No. (194) of 2018:
"The Board of Directors shall suspend the company's activity after verifying its submission of all documents proving its discharge from obligations towards its clients, in accordance with Article (33) of Law No. 95 of 1992, specifically the following documents:
- The minutes of the Ordinary General Assembly containing the decision to suspend the company's activity provisionally, along with the specified suspension period.
- Proof of publication of the Assembly's decision to suspend the activity in a widely circulated daily newspaper.
- The company's latest financial statement dated contemporaneously with the date of the Ordinary Assembly's approval of the suspension.
- A report from the company's auditor and the Chairman of the Board or Managing Director regarding the company's discharge from all obligations arising from the activity.
In case the company wishes to renew the suspension period, the minutes of the General Assembly shall suffice, provided they include a declaration that no obligations arose against the company during the previous suspension period."
Article Two
This Decision shall be published in the Egyptian Gazette and shall take effect from the date of its publication. Competent authorities are tasked with its implementation within their respective jurisdictions.
Chairman of the Board of Directors of the Authority
Dr. Mohamed Omran
Smart Village, Building 136 - B, Giza, Egypt
Postal Code: 12577
Telephone: +2.02 35345350 - Fax: +2.02 35370036
info@fra.gov.eg
www.FRA.gov.eg