Circular Letter No. (1) for the Year 2018

Dated 2018/1/7

Regarding the Audit of Accounts of Companies Listed on the Egyptian Exchange

Sixth: Companies Listed on the Egyptian Exchange:

In light of Article (11) of Capital Market Law No. (95) of 1997 – as amended by Law No. (123) of 2008 – regarding the establishment of a register with the Financial Regulatory Authority (FRA) to record auditors permitted to audit companies listed on the securities exchange, public offering companies, companies operating in the securities field, investment funds established by banks, and insurance companies, and stipulating that the Authority's Board of Directors sets the conditions and terms for registering and removing auditors from the aforementioned register.

In the context of the Authority's commitment to monitor companies' compliance with legal obligations to safeguard the interests of shareholders and investors relying on their financial instruments, and to avoid legal measures that may be taken in case of non-compliance with mandatory legal requirements.

The Authority urges all companies listed on the Egyptian Exchange to comply with Article (11) of the aforementioned Capital Market Law by ensuring that their auditors are registered in the Authority's dedicated register, with their details and registration numbers published on the Authority's website, without prejudice to the Central Audit Organization's jurisdiction to audit companies under its supervision.

The Authority also wishes to emphasize that non-compliance with Article (11) of the aforementioned Capital Market Law will result in the Authority's rejection of the periodic or annual financial statements submitted by the aforementioned companies, along with any legal consequences and liabilities for the company and its management.

This Circular Letter will be published on the screens of the Egyptian Exchange and its website, as well as on the website of the Financial Regulatory Authority.

Deputy Chairman of the Authority
Advisor / Rida Abdel-Moaty