Financial Regulatory Authority

FINANCIAL REGULATORY AUTHORITY

Deputy Chairman of the Authority
Circular No. (12) of 2020
Date: 5/7/2020

Subject: Regarding Permitting the Receipt of Subscription/Purchase and Redemption in Investment Fund Documents Electronically in Accordance with the Provisions of Law No. (95) of 1992

In light of the Financial Regulatory Authority's commitment to fulfilling its role in supervising non-banking financial markets, and its efforts to simplify and facilitate procedures to reduce congestion amid the circumstances the country is facing in confronting the coronavirus pandemic.

Within the framework of the Capital Market Law No. 95 of 1992, its executive regulations, and the decisions issued to implement them, which contain organized provisions regarding subscription, purchase, and redemption in investment fund documents.

It has been decided to permit subscription/purchase and redemption transactions in investment documents to be conducted electronically, without prejudice to the client's right to complete such transactions through the entities specified in the fund's subscription circular/information memorandum, subject to compliance with the following:

1. Independence of the client's account with the fund from any accounts they hold with the entity receiving the subscription/purchase or redemption.
2. Availability of a secure technological environment for this purpose.
3. Consistency between the subscription/purchase and redemption forms on the dedicated electronic website and the written results available at the entity's premises.
4. The entity receiving the subscription/purchase and redemption shall issue an electronic extract of the subscription certificate, stamped with the seal of the entity that received the subscription value and signed by the authorized person at that entity, containing the data stipulated by law.
5. Compliance with all relevant Central Bank regulations.

This circular shall be published on the Authority's electronic website, on the screens of the Egyptian Exchange, and on its electronic website.

Issued on: 5/7/2020

Deputy Chairman of the Authority
Al-Hajj / Khaled El-Nashar
46.78

Smart Village, Building No. B-136, Giza, Egypt Postal Code: 12577 Tel.: +202 35345350 - Fax: +202 35370036 info@fra.gov.eg

Smart Village, Building no. B-136, Giza
Postal Code: 12577
Tel.: (00202) 35345350 - Fax.: (00202) 35370036 www.FRA.gov.eg