Regulatory Alerts2014-01-01
Circular No. 4 of 2014 Regarding the Purchase of Subscription Rights on Behalf of Brokerage Firm Clients
The Egyptian Financial Regulatory Authority mandates that securities brokerage firms must fully inform clients about the nature, trading windows, and forfeiture conditions of subscription rights before executing purchase orders on their behalf. To ensure compliance, firms are required to obtain a signed client declaration confirming awareness of these terms, verbally inform telephone clients through recorded calls, or display mandatory warnings on electronic trading platforms prior to order submission. This directive aims to prevent client losses resulting from uninformed purchases or failure to trade rights within their valid periods.
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