Financial Regulatory Authority

FINANCIAL REGULATORY AUTHORITY

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Deputy Chairman of the Authority

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Circular Letter No. (6) of 2020 dated 3/3/2020

Regarding Immediate Notification to the Authority Upon Licensed Companies Being Assigned Financial Valuation and Fair Value Determination Studies

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• In the context of the Financial Regulatory Authority's commitment to the safety and stability of non-banking financial markets and its efforts to issue rules ensuring the efficiency of those markets and the transparency of activities conducted therein, and to guarantee the neutrality and independence of financial advisors.

• In light of the provisions of Article 28 bis of Capital Market Law No. 95 of 1992.

• With reference to the Egyptian Valuation Standards for Enterprises issued by the Authority's Board of Directors Decision No. (1) of 2017.

• Licensed companies authorized by the Financial Regulatory Authority to conduct financial valuation and prepare fair value determination studies – in the cases stipulated by the Capital Market Law and its Executive Regulations, or decisions issued to implement them – are obligated to notify the Authority immediately upon accepting any assignment to prepare a financial valuation to determine fair value in any of the cases required by the Capital Market Law and its Executive Regulations, or the listing and delisting rules of securities on the Egyptian Exchange, to conduct a valuation of companies, securities, or other assets taking the form of an enterprise or project, and all cases stipulated by the Authority's Board of Directors Decision No. 1 of 2017, and before commencing the valuation process, submit documentation indicating their assignment and the assignment details, along with evidence demonstrating the presence of neutrality and independence criteria within them, thereby enabling the Authority to exercise its oversight and verify the independence of the appointed financial advisor.

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Issued on: 31/3/2020

Deputy Chairman of the Authority
Khaled El-Nashar

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Financial Regulatory Authority
FINANCIAL REGULATORY AUTHORITY

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Smart Village, Building 136, Giza, Egypt
Postal Code: 110
Telephone: +202 35345350
Fax: +202 35370036
WWW.FRA.GOV.EG

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