Regulatory Alerts2014-01-01
Circular Letter No. (2) of 2014 Regulating Controls and Procedures for Obtaining Authority Approval for Transactions by Directors, Employees, and Relatives of Securities Market Companies
The Egyptian Financial Supervisory Authority (EFSA) issued Circular Letter No. (2) of 2014 to establish unified controls and procedures for obtaining prior regulatory approval for securities transactions conducted by directors, employees, and their relatives within securities brokerage, bond brokerage, and portfolio management companies. The directive mandates that these addressed persons trade exclusively through designated brokerage accounts under strict internal oversight, requiring companies to maintain dedicated registers, submit consolidated approval lists to the Authority, and report monthly on compliance and irregularities. Approved transactions are valid for six months, subject to renewal applications submitted ten days prior to expiration, and the circular explicitly repeals four previous circulars while prohibiting cross-company trading without verifying compliance with these new conditions.