Egyptian Financial Supervisory Authority

Egyptian Financial Supervisory Authority

Chairman of the Board of Directors

Board of Directors Decision No. (1) of 2010

Dated 12/1/2010

Regarding the Regulations Governing the Transfer and Closure of Branches of Companies Licensed to Conduct Securities Brokerage Activities

Board of Directors of the Egyptian Financial Supervisory Authority

Having reviewed the Capital Market Law issued by Law No. (95) of 1997 and the decisions issued to implement it;

and Law No. (10) of 2009 regarding the regulation of supervision over non-banking financial markets and instruments;

and Presidential Decision No. (192) of 2009 issuing the Basic Statute of the Egyptian Financial Supervisory Authority;

and Board of Directors Decision No. (22) of 2009 dated 1/4/2009 regarding the regulations for the transfer and closure of branches of securities brokerage companies;

and Board of Directors Decision No. (80) of 2011 regarding the provisions governing the registration of execution and marketing branches of securities brokerage companies in the Authority's register;

and the memorandum of the Central Administration for Establishment and Licensing;

and the approval of the Board of Directors in its meeting No. (1) held on 12/1/2010 ;

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Decided

(Article One)

The regulations contained in this Decision regarding the transfer and closure of branches of companies licensed to conduct securities brokerage activities shall apply, and the Central Administration for Market Services shall ensure that the documents submitted to it comply with the provisions stipulated in this Decision.

(Article Two)

The following rules shall apply regarding the handling of branches that were temporarily closed prior to the implementation of this Decision:

(1) Branches for which the Authority granted approval for temporary closure, and which failed to regularize their status within the deadline specified by Board of Directors Decision No. (80) of 2011, as amended by Decision No. (30) of 2012, shall require the affiliated securities brokerage companies to obtain the Authority's approval within one month from the effective date of these regulations, confirming the permanent closure of these branches in the Commercial Register.

(2) Branches for which the Authority granted approval for temporary closure after they followed the regularization procedures under Decision No. (30) of 2012, shall require the affiliated securities brokerage companies, upon resuming the branch's activities, to submit an application for the Authority's approval meeting all requirements stipulated in Board of Directors Decision No. 80 of 2011, updated according to the nature of the branch's activity (Class One Execution – Class Two Execution – Marketing), within a maximum period of three months from the date of adopting these regulations. In case the specified deadline expires without following the mentioned procedures, the branch shall be considered permanently closed and permanently deleted from the register maintained by the Authority.

(Article Three)

Companies wishing to close one or more of their branches shall submit to the Authority an application for the permanent closure of the branch:

accompanied by the following:

(1) The company's board of directors minutes recording the approval to permanently close the branch.

(2) A declaration from the company's Managing Director confirming that all customers have been notified that their accounts will be transferred to the company's headquarters or to another specified branch of the company, at least fifteen days prior to submitting the closure application to the Authority.

The Authority shall review the application, and upon approving the permanent closure of the branch, shall revoke the branch's opening license and delete it from the branches register.

(Article Four)

Companies wishing to transfer one of their branches shall submit to the Authority, and approval for the branch transfer requires submitting the following:

(1) The company's board of directors minutes including approval to transfer the branch, stating the new address and activity of the branch, along with a statement of the serious reasons relied upon by the company for relocating the branch headquarters, which are acceptable to the Authority.

(2) A statement detailing the facilities of the new premises in light of the purpose of the branch to be transferred.

(3) The original and a copy of the lease or ownership contract for the new branch premises, with the original returned after verification by the Authority.

(4) Technical inspection reports from the competent committee within the Authority confirming that the branch meets the technical and technological infrastructure conditions according to the technical requirements issued by the Authority.

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(Article Five)

In all cases, the company shall be obligated to notify all customers of the new branch address to which their accounts will be transferred, at least one week prior to the actual execution of the transfer.

(Article Six)

The Central Administration for Establishment and Licensing shall study and examine all applications related to the transfer and closure of branches of securities brokerage companies in coordination with other relevant departments, and a decision on the application shall be issued within fifteen days from the date of document completion.

(Article Seven)

Board of Directors Decision No. (22) of 2009 of the General Authority for the Capital Market is hereby repealed.

(Article Eight)

This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the day following its publication in the Egyptian Gazette, and the competent authorities are tasked with its implementation.

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Chairman of the Board of Directors
Sherif Samy

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Egyptian Financial Supervisory Authority
Office of the Chairman

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P.O. Box 718 - Postal Code 11111
info@efsa.gov.eg : Email
www.efsa.gov.eg : Website

20 Ammar El-Din St. - Cairo - Egypt
(02) 27737123 : Telephone
(02) 25741000 : Fax

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