Chairman of the Board of Directors

Decision of the Chairman of the Authority's Board of Directors No. 557 of 2010 dated 4/11/2010 regarding the facilitation of executive procedures for the registration and regularization of branch registrations in the Authority's Branch Register

Chairman of the Board of Directors of the Egyptian Financial Supervisory Authority

Having reviewed the Capital Market Law issued by Law No. 95 of 1992 and its Executive Regulations, the Central Depository and Registration of Securities Law issued by Law No. 93 of 2000 and its Executive Regulations, Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments, Presidential Decree No. 192 of 2009 concerning the Basic Statute of the Egyptian Financial Supervisory Authority, the Authority's Board of Directors Decision No. (68) of 2010 dated 17/5/2010 concerning the licensing criteria for branches of brokerage companies and licensing for marketing trading on the Egyptian Exchange via the Internet network, and the Authority's Chairman Decision No. (457) of 2010 dated 31/8/2010 concerning the executive procedures for the registration and regularization of branch registrations in the Authority's Branch Register.

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Has Decided

Article (1)

For a Category (C) Executor, the experience requirement is not mandatory, as passing one of the courses approved by the Authority suffices. Furthermore, passing the trading test administered by the Exchange is not required. For both Category (B) and Category (C) Executors, submitting proof of registration in both courses is permitted until they pass the test.

Article (2)

The registration status of a Category Two Execution Branch may be regularized, provided that two Category (C) Executors are available, and one of them may be assigned to perform the duties of Account Manager for the Category Two Execution Branch. The company shall be obligated to add at least one Category (B) Executor and appoint an Account Manager for the Execution Branch within three months from the date of the Authority's approval of the branch registration regularization.

Article (3)

The Department responsible for registering new branches and regularizing the registration of current branches in the Authority's Branch Register shall, in coordination with the relevant department at the Exchange, periodically submit a monthly report on brokerage companies operating under the Internet-based trading system. This report shall include the date the company actually commenced Internet-based trading activities, as well as the date of the last execution carried out for one of its clients through this system.

Article (4)

Subparagraphs (3) and (4) of Article (5) of the Authority's Chairman Decision No. 457 of 2010 are hereby repealed. Additionally, Document No. (6) from Appendix (A) of the documents for registering a new Category One Execution Branch in the Branch Register, Document No. (6) from Appendix (B) of the documents for registering a new Category Two Execution Branch in the Branch Register, Document No. (5) from Appendix (C) of the documents for registering a new Marketing Branch in the Branch Register, and Document No. (4) from Appendix (D) of the documents for regularizing the status of a current Order Receiving Branch in the register to a Marketing Branch, as per the appendices of the Authority's Chairman Decision No. 457 of 2010, are hereby repealed.

Article (5)

Any current Order Receiving or Execution Branch qualified in the Branch Register may have its registration status regularized to any type of branch issued under the Authority's Board of Directors Decision No. 68 of 2010 dated 17/5/2010, whether to a Category One Execution Branch, Category Two Execution Branch, or Marketing Branch.

Article (6)

Marketing Branches are not permitted to receive client orders, as their role is limited to marketing brokerage services, signing contracts with clients, and delivering client identification documents, confirming the user's identity and identification code, provided that the company holds the Authority's approval for the Internet-based trading system. Furthermore, it is not a requirement for registering a Marketing Branch in the Branch Register that the Authority has approved the brokerage company to conduct Internet-based trading activities.

Article (7)

The lists of documents attached to Decision No. 457 of 2010 are amended in light of this Decision, its attached appendices, and forms published on the Authority's electronic website. This Decision and its appendices shall take effect on the day following its issuance, and any provision conflicting with it in any prior decision is hereby repealed.

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Dr. Ziad Bahaa Eldin
Chairman of the Authority

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Egyptian Financial Supervisory Authority
Egyptian Financial Supervisory Authority (EFSA)

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