Prime Minister's Decision No. 255 of 2011

amending certain provisions of Prime Minister's Decision No. 1764 of 2004 establishing a fund to insure securities market participants against non-commercial financial risks arising from the activities of companies operating in the securities field

Prime Minister
Having reviewed the Constitutional Declaration issued on 13/2/2011, and the Law on Supervision and Regulation of Insurance in Egypt issued by Law No. 10 of 1981 and its Executive Regulations, and the Law on Joint Stock Companies, Companies Limited by Shares, and Limited Liability Companies issued by Law No. 159 of 1981, and the Capital Market Law issued by Law No. 95 of 1992 and its Executive Regulations, and the Law on the Central Bank, Banking System, and Currency issued by Law No. 88 of 2003 and its Executive Regulations, and Law No. 10 of 2009 concerning the regulation of supervision over non-Egyptian markets and financial instruments, and Presidential Decision No. 191 of 2009 regarding the rules governing the management of the Egyptian Exchange and its financial affairs, and Prime Minister's Decision No. 1764 of 2004 establishing a fund to insure securities market participants against non-commercial financial risks arising from the activities of companies operating in the securities field, and upon the proposal of the Board of Directors of the Financial Regulatory Authority.

Decided

(Article One)

A new paragraph shall be added to the end of both Articles Three and Seven of Prime Minister's Decision No. 1764 of 2004, and Article Seven bis and Article Fourteen bis shall be added to the same Decision, as follows:

Article Three, final paragraph:

The Fund's Board of Directors may reduce the periodic contribution rates for its members in light of market conditions.

Article Seven, final paragraph:

The Fund may compensate clients of the Fund's members by purchasing the same securities for them at the value of the compensation due to them from the Fund, in accordance with the rules issued by a decision of the Fund's Board of Directors.

Article Seven bis:

In exceptional emergency circumstances, the Fund may intervene to address risks facing the securities market by providing interest-bearing loans to its members to support their market activities, up to 20% of the Fund's financial resources, in accordance with the rules established by the Fund's Board of Directors and approved by the Financial Regulatory Authority.

Article Fourteen bis:

Without prejudice to the provision of Article Thirteen, the Fund's Board of Directors may allocate a percentage not exceeding 10% of its resources to form a securities portfolio aimed at investing in listed securities, within the limits and according to the controls specified by the Fund's Board of Directors.

(Article Two)

This Decision shall be published in the Egyptian Gazette and shall take effect from the day following its publication date.

Prime Minister
(Dr. Essam Sharaf)
Issued at the Prime Minister's Office on 8 Rabi' al-Thani 1432 AH Corresponding to 13 March 2011 AD A copy sent to Mr. / Head of the Financial Regulatory Authority

Secretary General of the Council of Ministers
(Dr. Samy Zaghloul)