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FRA issues the statute of the first Egyptian Securities Federation

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• Dr. Omran: For the first time in the history of the Egyptian Capital Market, complaints from the Federation’s members will be amicably resolved
• Dr. Omran: Membership of the Federation shall be obtained for each company licensed to carry out activities in the field of securities or subjected to the provisions of the Central Depository and Registry Law
• Dr. Omran: The Authority appoints a Constitutional Committee to take the necessary measures to call for the meeting of the first General Assembly of the Federation to elect the Board of Directors

FRA’s BOD approved in its last session – held this week – the statute of the Egyptian Securities Federation. The Board grants the Federation an independent legal personality which contributes to the development of the Capital Market and raises awareness of it. Also, FRA’s BOD stressed that members’ of the Federation shall abide by the code of ethics and rules governing the obligations and rights of the members. Besides, it shall develop the skills of those operating in the field of securities.

Dr. Mohammed Omran- FRA’s Chairman emphasized that for the first time in the history of the Egyptian Capital Market a self-regulated entity is established by those operating in the capital market activity. The Federation defines the rules governing the obligations and rights of the members. The Egyptian Securities Federation shall settle the complaints submitted by the Federation’s members – amicably – within a month at the most from the date of submission. If the Federation does not reach an amicable solution during this period, these complaints shall be submitted to the Authority, together with a report on its status within five days from the date of reaching an amicable solution or the time limit referred to, as the case may be.

Dr. Mohammed Omran –FRA’s Chairman said that the Egyptian Securities Federation is in charge of establishing a “code of ethics” for securities professionals adopted by the General Assembly and approved by the Authority. In addition to setting a guide for companies operating in the field of securities and subjected to the provisions of Capital Market Law No. (95) 1992 and the provisions of the Central Depository and Registry Law promulgated by Law No. (93) of 2000, in a manner that does not contradict the applicable laws and the decisions issued in this respect.

Dr. Omran added that the Federation will be allowed to express its opinion in any community dialogue held upon drafting bills – in the future – or proposing amendments to existing legislations relating to the field of securities or affect it.

Dr. Omran noted that the provisions of the Federation’s statute issued by FRA’s BOD decision no. (20) of 2019 allowed the Federation to issue  measures in accordance with the sanctions regulations prepared by the  Federation’s General Assembly and approved by the Authority or the Egyptian Exchange.

The Statute also stipulates that the Federation shall exercise its functions through its related bodies represented in the General Assembly composed of one representative for each member who has fulfilled the financial obligations due in accordance with this statute until the Assembly convenes.  That is besides an elected Board of Directors consisting of nine members, in addition to specialized committees which are concerned with implementing the policies and programs necessary to achieve the Federation’s objectives in accordance with the annual work plan prepared by the Federation’s BOD and adopted by the General Assembly. In addition to the Federation’s Executive Management, headed by a full-time Executive Director assigned by a decision issued by the Federation’s BOD. He must have the necessary expertise and competence to fill the position. Also, he shall be supported by an appropriate number of employees to carry out the technical, financial, administrative and service functions necessary for facilitating the Federation’s work and achieving its objectives.

FRA’s Chairman affirmed that each company operating in the field of securities is subjected to the provisions of the Capital Market Law promulgated by Law No. 95 of 1992 or the provisions of the Central Depository and registry Law promulgated  by Law No. (93) of 2000. He added that the company will be a member of the Federation once it obtains a license from the Authority to practice the activity and registered at FRA’s registries. Meanwhile, the membership shall be cancelled as soon as the Authority cancels the license granted to the member to engage in the activity.

He added that once the statute is published in the Egyptian Gazette, the Authority will speed up the establishment of the Federation by appointing a Constitutional Committee of at least five members representing the companies licensed to carry out securities activity or subjected to the provisions of the Central Depository and Registry Law. The first General Assembly of the Federation shall be convened to elect the Board of Directors and take the necessary decisions to activate the Federation and start its activities. The first General Assembly shall convene within a period not exceeding six months from the formation of the said committee to consider approving the income and expenditure account and review the auditor’s report for this period.
 

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Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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