Board of Directors Secretariat

Decision of the Board of Directors No. (7) of 2017

Dated 23/5/2017

Concerning the Amendment of Certain Provisions of the Financial Solvency Standards for Securities Market Companies

Board of Directors of the Financial Regulatory Authority

Having reviewed the Capital Market Law issued by Law No. (95) of 1992 and its executive regulations and amendments, and the decisions issued to implement it; and the Central Deposit and Registration of Securities Law issued by Law No. (93) of 2000 and its executive regulations; and Law No. (10) of 2009 concerning the regulation of supervision over non-banking financial markets and instruments; and Presidential Decision No. (191) of 2009 regarding the provisions governing the Egyptian Exchange and its financial affairs; and Presidential Decision No. (192) of 2009 issuing the Statute of the Financial Regulatory Authority; and Decision of the Chairman of the General Authority for the Capital Market No. 14 of 2007, amended by Decision No. 147 of 2007; and decisions of the Board of Directors of the General Authority for the Capital Market Nos. 75 of 2007, 103 of 2007, and 12 of 2008; and decisions of the Board of Directors of the Financial Regulatory Authority No. 47 of 2013, and No. 37 of 2014; and Decision of the Board of Directors of the Authority No. (11) of 2014 concerning the rules for listing and delisting securities on the Egyptian Exchange and its amendments; and upon the approval of the Board of Directors of the Authority on 23/5/2017.

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Has Decided

(Article One)

The following texts shall replace the texts of clauses (b), (c), and (d) of Article (2) concerning the obligations of companies operating in the securities market, as attached to the Authority's Decision No. 14 of 2007 concerning the financial solvency standards for securities market companies:

(b) - "To electronically submit to the Authority and the Exchange on each working day a figure representing the liquid capital as of the previous working day, certified by the company's Chief Financial Officer and Managing Member, in accordance with the procedures, systems, and mechanisms designated by the Authority and the Exchange for this purpose."

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(c) - "To submit to the Authority and the Exchange a report on the net liquid capital as of the last working day of each quarter, accompanied by the limited examination report of the external auditor and the quarterly financial statements, as well as a report from the external auditor regarding the company's net liquid capital for the period, within a maximum of 45 days from the end of the period."

(d) - "To submit to the Authority and the Exchange a report on the net liquid capital as of the last working day at the end of the financial year, accompanied by the external auditor's report and the annual financial statements, as well as a report from the external auditor regarding the statement of the company's net liquid capital for the period and a review thereof, within a maximum of 90 days from the end of the financial year."

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(Article Two)

A new clause (d) shall be added to Article (3) concerning other measures and procedures, as attached to the Authority's Decision No. 14 of 2007 concerning the financial solvency standards for securities market companies, with the following text:

(d) - "The Exchange shall inform the Authority daily of a consolidated statement regarding the financial solvency of member companies as of the previous day, along with any observations or violations that may become apparent regarding it."

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(Article Three)

Clause (e) of Article (2) concerning the obligations of companies operating in the securities market, as attached to the aforementioned Authority Decision No. 14 of 2007, is hereby repealed. Furthermore, any provision conflicting with the provisions of this Decision is repealed.

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(Article Four)

This Decision shall be published on the websites of the Authority and the Exchange, and shall take effect from the day following its publication date.

All companies and entities addressed by it, as well as the competent departments of the Authority and the Exchange, are tasked with its implementation within their respective jurisdictions.

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Board of Directors
Sherif Samy
Chairman of the Authority