Regulatory Alerts2018-01-01
Board of Directors Decision No. 25 of 2018 Amending Decision No. 61 of 2017 on Client Account Protection Procedures for Securities Companies
The General Authority for Financial Supervision issued Board Decision No. 25 of 2018 to amend the client account protection procedures for securities companies under its jurisdiction. The amendment modifies Article Two of Decision No. 61 of 2017 by explicitly permitting the execution of securities trades, cash and check deposits and withdrawals, transaction acknowledgments, and account statement certifications through either special or general official powers of attorney. Additionally, it authorizes bank custodians to utilize Egyptian powers of attorney issued by their respective institutions to perform custodial activities on behalf of clients.
General Authority for Financial Supervision Decision of the Authority's Board of Directors No. 25 of 2018 Dated 3/4/2018 Amending Certain Provisions of Board Decision No. 61 of 2017 Regarding Procedures to Enhance Protection of Clients' Accounts with Securities Companies
The Board of Directors of the General Authority for Financial Supervision, Having reviewed the Capital Market Law issued by Law No. 95 of 1992 and the decisions issued in implementation thereof; and the Central Depository and Registration of Securities Law issued by Law No. 93 of 2000; and the Executive Union; and the Law Regulating Supervision over Non-Egyptian Markets and Financial Instruments issued by Law No. 10 of 2009; and Presidential Decree No. 191 of 2009 on the Rules Governing the Management of the Egyptian Exchange and Its Financial Affairs; and Presidential Decree No. 192 of 2009 Issuing the Statutes of the General Authority for Financial Supervision; and Board Decision No. 67 of 2012 Regarding the Mechanism for Trading Shares in the Same Session and Its Amendments; and Board Decision No. 67 of 2014 Regarding the Regulation of Margin Securities Purchasing Activities; and Board Decision No. 61 of 2017 Regarding Procedures to Enhance Protection of Clients' Accounts with Securities Companies and Its Amendments; and the resolutions of the Authority's Board of Directors in its session held on 3/4/2018;
Decision: (1) Article The text of the second paragraph of Article Two of the aforementioned Board Decision No. 61 of 2017 is hereby replaced with the following: «Pursuant to the preceding paragraph, the sale and purchase of securities, deposit and withdrawal of checks and cash, acknowledgment of transactions and data, and certification of account statements may be carried out via a special official power of attorney or a general official power of attorney, provided that the power of attorney includes authorization to trade on the client's account with securities companies. Custodians from banks may also act via Egyptian powers of attorney issued by the same bank regarding their activity as custodians.»
(2) Article This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the day following its issuance date.
Chairman of the Board of Directors Dr. Mohamed Omran