Aggregated News From Investment Management Regulators

Establishing a registry to list entities that are licensed to perform financial valuation and prepare fair value studies, Today FRA hold series of workshops to inform financial advisors of the new regulations

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• Dr. Omran: FRA’s Board of Directors issues a decision on listing and delisting rules of entities licensed to perform financial valuation and prepare fair value studies
• Dr. Omran: Granting a period of six months to adjust positions and meet listing requirements
• Dr. Omran: Compliance with the Egyptian Financial valuation Standards is a condition for continuing listing at financial valuation registry and fair value
studies

Within  the framework of  introducing new amendments to Capital Market Law promulgated by Law no. (17) of 2018, Dr. Mohammed Omran – FRA’s Chairman issued  decision no. (114) dated 16/7/2018 after gaining the approval of FRA’s Board at its last session to establish a registry to list entities licensed to perform financial valuation and prepare fair vale studies in accordance with some listing and delisting rules.

Dr. Mohammed Omran – FRA’s Chairman said that the Board’s decision was issued with the aim of protecting investors and translating the Authority’s  keenness to achieve the disclosure element  and in an integrated manner for the securities fair value  in all cases required by the capital market law , its Executive Regulations and issued decisions, that is  in cases of issuance of new shares , tender  offers and acquisition, and  in other cases  required by listing and delisting rules  in the Stock Exchange.

On the other hand, Dr. Omran said that in light of the Authority’s keenness to protect the rights of dealers and raise their awareness of the new regulatory procedures, FRA is organizing today the first series of panel discussions on the duties and functions of independent financial advisors in accordance with the provisions of the Capital Market Law and FRA’s decisions.

FRA’s Chairman  added that the workshop’s activities stressed  that  FRA’s Board decision stated that  fair value studies should not be carried out except through listed entities  that meet listing  requirements, foremost of which are the fulfillment of the terms of expertise and professional competence that must be met by the certified  financial appraiser who signs the report and determine the fair value in addition to those who participate in preparing the study, who must not be less than three individuals. The most important conditions of experience and efficiency included in the  Board’s decision is to  obtain a professional certificate in areas related to financing or investment , besides  passing  FRA’s tests in topics related to the financial valuation, as well as participating in the preparation of three studies  before applying for listing at the said registry.

Also, Dr. Omran noted that the Board’s decision set conditions for continuing listing of the companies and entities referred to. The most important of these is the compliance with the Egyptian Financial valuation Standards issued by Board’s decision no. (1) of 2017 , also it is not allowed to perform  financial valuation  for  two or more parties at the same time and stop dealing on securities that the valuation entity  included in the study during the next three years of the valuation date. 

 Dr. Omran revealed that the Board’s decision set a period of three years for being listed at the registry, which may be renewed for other similar periods provided that the listing rules shall be met. In addition, the decision allowed FRA’s Board of Directors to take a number of penalties  and administrative measures if the financial valuation standards  were violated  and accordingly  this may lead to delisting or cancelling the granted  license besides a period of six months shall be granted to adjust the positions and meet listing requirements .
 

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Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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