Regulatory Alerts2021-01-01
Circular Letter No. (4) of 2021 Regarding Entities Licensed to Conduct Custodian Activities
The Financial Regulatory Authority of Egypt requires securities companies previously licensed for custodian activities under a client-exclusive restriction to formally apply to the Authority for removal of that condition. These firms must additionally submit quarterly statements listing all client names to insiders@fra.gov.eg. This directive aligns with existing financial supervision laws and will be disseminated via official regulatory and exchange channels.
Financial Regulatory Authority FINANCIAL REGULATORY AUTHORITY
Deputy Chairman of the Authority
Circular Letter No. (4) of 2021 Dated 4/2/2021 Regarding Entities Licensed to Conduct Custodian Activities
In the context of the Authority carrying out its duties pursuant to the provisions of Law No. 10 of 2009 issued regarding the supervision and regulation of non-banking financial markets and instruments.
And in light of the provisions of the Central Deposit and Registration Law No. 93 of 2000, its executive regulations, and amendments thereto, which govern the scope of definition, conditions required, and procedures to be followed by entities licensed to conduct custodian activities, including banks, branches of foreign banks registered with the Central Bank of Egypt, securities companies, and companies licensed to conduct registered owner and beneficial owner activities.
And with reference to the Authority's Board of Directors Decision No. 7 of 2002 issued regarding the controls for granting licenses to conduct custodian activities to banks, securities companies, and other entities.
And in pursuit of the Authority's commitment to fulfilling its role in developing and enhancing non-banking financial activities, and contributing to spreading investment culture and awareness.
Therefore, securities companies licensed to participate in establishing companies that issue financial securities or increase their capital, and which were previously granted a license to conduct custodian activities -subject to the condition that it be restricted exclusively to their own clients- must apply to the Authority to take all necessary procedures to remove this condition, without prejudice to the rules applicable in this regard.
Such companies shall be obligated to submit a quarterly statement listing the names of all their clients to the email address: insiders@fra.gov.eg
This circular letter shall be published on the Authority's website, on the screens of the Egyptian Exchange, and on its website.
Issued on: 4/2/2021
Dr. Islam Azam Deputy Chairman of the Authority
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