Brokerage companies object to recent decisions

A group of brokerage companies in Egypt submitted a memorandum to the Egyptian Stock Market Authority (ESMA) in which the companies asked for an explanation of recent decisions issued by the authority.

The ESMA had recently issued regulations concerning the experience and efficacy required to license any company to work in the stock market. The companies objected to these regulations, which require the managing director and most of the members of the board of directors of the company to have at least 7 years of experience, which is problematic as all these companies were established 5 years ago, in accordance with the law 95/92. The companies described these conditions as obstacles.

The companies also objected to the decision that allows former members of the board of directors of any bank, one of the professors at a university, or a director of one of the companies working in the stock market or credit department of one of the banks to work in this field. The companies found that those mentioned in the decision would not have direct experience in the stock market, which mainly depends on practical experience.