Regulatory Alerts2021-01-01
Financial Regulatory Authority Board of Directors Resolution No. (46) for the Year 2021 Regarding Allowing Licensed Investment Fund Management Companies to Manage Margin Securities Purchase Financing Through Brokerage Firms
The Financial Regulatory Authority (FRA) issued Resolution No. 46 of 2021 to permit licensed investment fund management companies to manage margin financing for securities purchases through approved brokerage firms. The resolution mandates a formal contract detailing each party's rights and obligations, including collateral provisions and conflict-of-interest safeguards regarding related-party brokerage financing. Furthermore, it restricts this margin financing to a specific list of securities that meet the Egyptian Exchange's criteria and receive FRA approval, with immediate effect upon publication in the Egyptian Gazette.
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