Decision of the Chairman of the Financial Regulatory Authority No. 1725 of 2021 on a Factoring Contract Model for Financial Rights Arising from Margin Securities Purchase Operations

The Egyptian Gazette – Issue 135 on June 16, 2022

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Financial Regulatory Authority
Decision No. 1725 of 2021 dated 2021/10/19 regarding a factoring contract model for financial rights arising from margin securities purchase operations Chairman of the Financial Regulatory Authority Having reviewed Law No. 10 of 2009 regarding the regulation of supervision over non-banking financial markets and instruments; And Law No. 176 of 2018 on Financial Leasing and Factoring; And Presidential Decree No. 192 of 2009 issuing the Articles of Association of the Financial Regulatory Authority; And Board of Directors Decision No. 163 of 2018 regarding the executive controls for practicing factoring activity; And Board of Directors Decision No. 25 of 2021 amending some provisions of Board of Directors Decision No. 163 of 2018 regarding the executive controls for practicing factoring activity; And the memorandum of the Non-Banking Financial Companies Supervision and Control Sector dated 2021/10/14;

The Egyptian Gazette – Issue 135 on June 16, 2022

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Has Decided:
(Article One)
The factoring contract for financial rights arising from margin securities purchase operations shall be drawn up in accordance with the attached model, and companies shall adhere to the minimum data contained in this contract model when practicing the activity. (Article Two) This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall be effective from the date of its issuance. Chairman of the Board of Directors of the Financial Regulatory Authority Dr. Mohamed Omran

The Egyptian Gazette – Issue 135 on June 16, 2022

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Factoring Contract for Financial Rights Arising from Margin Securities Purchase Operations
On this day ............ corresponding to ....................
This contract has been drawn up between:
First - M/s. ........... S.A.E. Company, with its head office at .................. , Commercial Register No. .......... for the year .......... and renewed on .........../...../..... Represented in signing this contract by Mr. / ....................................... in his capacity as ............................. . (First Party - The Factor) Second - M/s. ............ S.A.E. Company, with its head office at ................. , Commercial Register No. ........... for the year ............. and renewed on ........../..../.... Represented in signing this contract by Mr. / ....................................... in his capacity as ................................... . (Second Party - The Broker - The Seller) Preamble Whereas the First Party (the Factor) practices factoring activity and is licensed by the Financial Regulatory Authority to engage in the activity and is registered in the Factors Register at the Financial Regulatory Authority under No. (.......) in accordance with the provisions of Law No. 176 of 2018 regulating financial leasing and factoring activities, and whereas the Second Party is one of the companies operating in the field of securities brokerage in accordance with the provisions of Capital Market Law No. 95 of 1992 and its executive regulations and is licensed by the Financial Regulatory Authority to carry out margin securities trading operations and provide financing to pay part of the purchase price of

The Egyptian Gazette – Issue 135 on June 16, 2022

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(Clause One)
The preceding preamble and the attached annexes are an integral part of this contract.
(Clause Two)
The First Party (the Factor) agreed to purchase the financial rights arising from financing margin securities purchase operations, which are the subject of this contract and are owned by the Second Party (the Broker), and which arose or devolved to him as a result of his practice of the activity referred to in the preamble of the contract. The details of these rights, the terms of their factoring, and related services are as stated in the annexes to this contract. (Clause Three) The parties agreed that the factored financial rights arising from financing margin securities purchase operations, which are the subject of this contract, shall be transferred in accordance with the provisions of the Civil Code and through (assignment of rights or subrogation) attached to this contract in accordance with annexes numbers (... , ....). All rights and guarantees owned by the Second Party against its client investors in margin securities purchase operations on the Egyptian Exchange, hereinafter referred to as