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Organising the Board of the Investo

Organising the Board of the Investor Protection Fund
One of the main pillars of the Egyptian regulatory system is the "Fund Protecting Those Dealing in Securities from Financial Non-Commercial Risks Arising from Activities in the Field of Securities”. This Fund serves the essential function of ensuring the rights of those who deal in the field of securities and face risks that do not affect the price of stocks, such as theft, vocational mistakes, or other errors. The Fund was established in 2004 and has become one of the most important regulatory safeguards in place at the Egyptian stock market. It is contributed to by those companies working in the field of securities and has an independent Board of Directors managing its affairs. As part of the continuous developments undertaken by the Egyptian Financial Supervisory Authority of the securities market, two decrees were issued in September:
  1. A decree by the Prime Minister which extends the tenure of the current management of the Fund by an additional three months beginning from the end of the current term.[1]
  1. A decree by the Prime Minister which reorganises the rules pertaining to the governance of the Fund and restructures supervision thereof (the "Decree").[2]
The Fund requires a contribution amounting to 0.01% of the company's revenues with a minimum threshold of EGP 100,000. The Board of Directors consists of a representative of the Minister of Investment, three representatives of the member companies, and a representative from both the Stock Exchange and the Central Depository, and three experts in the field of securities. The Chairman of the Board will be selected from among the three expert members. The Decree stipulates that the Fund shall cover the actual financial loss to clients of the company at a maximum value of EGP 500,000 per customer. The Decree also regulates the ways in which the Fund shall invest its resources. The Decree confirms the importance of this Fund in the Egyptian capital market environment and aim to correct the various problems existing today.   [1] Prime Minister's Decree No. 1575/2014 extending the tenure of the current management of the Fund by an additional three months, Egyptian Gazette, Issue No. 201 (cont.), 4 September 2014. [2] Prime Minister's Decree No. 1576/2014 on the fund protecting those dealing in securities from financial non-commercial risks arising from activities in the field of securities, Egyptian Gazette, Issue No. 201 (cont.), 4 September 2014.
One of the main pillars of the Egyptian regulatory system is the "Fund Protecting Those Dealing in Securities from Financial Non-Commercial Risks Arising from Activities in the Field of Securities”. This Fund serves the essential function of ensuring the rights of those who deal in the field of securities and face risks that do not affect the price of stocks, such as theft, vocational mistakes, or other errors. The Fund was established in 2004 and has become one of the most important regulatory safeguards in place at the Egyptian stock market. It is contributed to by those companies working in the field of securities and has an independent Board of Directors managing its affairs. As part of the continuous developments undertaken by the Egyptian Financial Supervisory Authority of the securities market, two decrees were issued in September:
  1. A decree by the Prime Minister which extends the tenure of the current management of the Fund by an additional three months beginning from the end of the current term.[1]
  1. A decree by the Prime Minister which reorganises the rules pertaining to the governance of the Fund and restructures supervision thereof (the "Decree").[2]
The Fund requires a contribution amounting to 0.01% of the company's revenues with a minimum threshold of EGP 100,000. The Board of Directors consists of a representative of the Minister of Investment, three representatives of the member companies, and a representative from both the Stock Exchange and the Central Depository, and three experts in the field of securities. The Chairman of the Board will be selected from among the three expert members. The Decree stipulates that the Fund shall cover the actual financial loss to clients of the company at a maximum value of EGP 500,000 per customer. The Decree also regulates the ways in which the Fund shall invest its resources. The Decree confirms the importance of this Fund in the Egyptian capital market environment and aim to correct the various problems existing today.   [1] Prime Minister's Decree No. 1575/2014 extending the tenure of the current management of the Fund by an additional three months, Egyptian Gazette, Issue No. 201 (cont.), 4 September 2014. [2] Prime Minister's Decree No. 1576/2014 on the fund protecting those dealing in securities from financial non-commercial risks arising from activities in the field of securities, Egyptian Gazette, Issue No. 201 (cont.), 4 September 2014.