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Wednesday, 14 June 2017

New regulations mean the head of the EGX will be limited to two four-year terms

New regulations mean the head of the EGX will be limited to two four-year terms: President Abdel Fattah El Sisi signed off in official decree yesterday on changes to how the EGX’s senior management team is appointed, according to Ahram Gate. Under the amendments, the prime minister will be responsible for appointing the chairman and number two at the EGX for a four-year term that could be renewed only once. During their tenure, both officials will sit on the board of directors, which will also include as members a central bank representative, three elected executives from securities firms, two others from EGX-listed firms, an official from one of the custodian banks, and two independent experts that will be nominated by the PM.

[Editor’s note: this entry was corrected to show that the decree specified that the EGX Chairman’s four-year term could be renewed only once, giving the chairmanship an effective two-term limit]

Meanwhile, EFSA has handed down new regulations to facilitate trading on the EGX for overseas clients: The Egyptian Financial Supervisory Authority (EFSA) issued new regulations on Tuesday that will allow foreigners and Egyptians living abroad to hire representatives to open trading accounts with brokerage firm on their behalf, Al Mal says. Representatives will be able to buy and sell stocks by proxy under the single condition that the client, rather than the brokerage firm, directly finance the transaction (read: no margin trading for you, Skippy). Under the new regulations, representatives can also deposit and cash checks, verify client data, and sign off on account statements. Clients will have to renew their representatives’ power of attorney every five years.

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