General Authority for Financial Supervision Board Decision No. (47) of 2013 dated 18/11/2013

Regarding the Amendment of Financial Solvency Standards for Brokerage 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 its executive regulations, and the decisions issued to implement them; and the Central Depository and Registry 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 Decree No. (191) of 2009 regarding the regulations governing the Egyptian Exchange and its financial affairs; and Presidential Decree No. (192) of 2009 issuing the Statute of the General Authority for Financial Supervision; and the Board of Directors of the General Authority for the Capital Market Decision No. (29) of 2004 concerning the regulation of the Settlement Guarantee Fund's operations; and the Chairman of the General Authority for the Capital Market Decision No. (27) of 2005 concerning measures that may be taken against central depository members regarding their non-compliance with the operational systems of the central depository and registry; and the Chairman of the General Authority for the Capital Market Decision No. (14) of 2007, amended by Decision No. (147) of 2007, and the Board of Directors of the General Authority for the Capital Market Decisions No. (103) of 2007 and No. (12) of 2008; and after consulting with the Egyptian Exchange and the Central Depository and Registry of Securities Company; and upon the approval of the Authority's Board of Directors in its session No. (14) of 2013 dated 18/11/2013;

Has Decided

(Article One)

The weighting factor for brokerage companies' contributions to the Settlement Guarantee Fund as a long-term financial investment, listed under item (9): "Other long-term assets" in Appendix (A) attached to this Decision, is amended as follows:

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Appendix (A)

First: Assets:

(9) Other long-term assets:

• Long-term financial investment – Settlement Guarantee Fund
  (a) For companies classified as Category (A), the contribution is calculated at 80% of its value.
  (b) For companies classified as Category (B), the contribution is calculated at 60% of its value.
  (c) For companies classified as Category (C) or Category (D), the contribution is calculated at 0% of its value.

The weighting factor for companies' contributions to the Settlement Guarantee Fund, listed under item No. (8) of Appendix No. (7) "Net Liquid Capital Model Table", is also amended as follows:

Item No.	Book Balance (Market Value)	Weighting Factor	Weighted Value
(8)	Other long-term assets
	.......
	Contribution to Settlement Guarantee Fund
	Companies classified as (A)	80%
	Companies classified as (B)	60%
	Companies classified as (C)	0%
	Companies classified as (D)	0%

(Article Two)

The Central Depository and Registry of Securities Company shall comply with the following:

1. To notify member companies of the Settlement Guarantee Fund of their classification category and the weighted percentage of their contributions to the Fund as part of solvency elements monthly, and on the day following any change in the company's risk-based classification category.

(Article Three)

In the event that a member company of the Settlement Guarantee Fund makes a partial or full cash withdrawal of its contribution percentage value to the Fund in accordance with the provisions of Article One of this Decision, the Central Depository and Registry of Securities Company shall be entitled to take the measures stipulated in the Authority's Board of Directors Decision No. (27) of 2005.

(Article Four)

This Decision shall take effect as of December 1, 2013, and the concerned authorities shall implement it according to their respective competencies.

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Sherif Samy
Chairman of the Board

(General Authority for Financial Supervision - Chairman's Office) 46076

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