Regulatory Alerts2014-01-01
Decision of the Board of Directors of the Authority No. 36 of 2014
The General Authority for Financial Supervision issued Decision No. 36 of 2014 to regulate margin purchase operations by securities brokerage companies and custodians. The decision mandates a minimum net shareholders' equity of five million Egyptian pounds, requires prior approval with comprehensive financial and operational documentation, and imposes strict caps on financing ratios, customer debt exposure, and collateral valuation discounts. It further establishes ongoing compliance obligations, including daily collateral revaluation, mandatory margin calls, real-time reporting to the Central Depository and Registration Company, and the Authority's discretionary power to revoke approvals to protect market integrity.
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