A+ A-
Article 66 Of Chapter 5
Section: Regulated Securities Activities

A Person licensed to engage in the management of Securities activities shall comply with the regulations specified in the Bylaws and in particular as follows:

1 - Separate commercial Dealing in Securities from any other commercial activities.

2 - Maintain adequate capital.

3 - Ensure that clients’ funds or Securities shall not be transferred for personal use, nor be mismanaged.

4 - Not to incur excessive debt in order to obtain or hold Securities.

5 - Have reasonable justifications or grounds to believe that any Securities recommended to a client are appropriate for that client.

6 - Never make promises to a client of certain return or guarantee to a client that he/she shall not incur loss, unless the nature of the Securities necessitates so.

7 - Seek to achieve the best performance for the client’s benefit.

8 - Shall not collect high commissions or offer unduly high discounts in transactions.

9 - Shall not engage in excessive sale or purchase transactions in the client’s account.

10 - Shall provide clients with the documents and account statements related to their transactions.

11 - Prepare and maintain regular books and records.

12 - Appoint one of its managers to be responsible for implementing legal obligations.

13 - Shall have written supervisory bylaws, regulations and rules to control its operations, including procedures to prevent the misuse of Insider Information, as well as specific procedures to detect and prevent money laundering.

 

* Article (66) is amended pursuant to Law No. 22 of 2015 Amending Some Provisions of Law No. 7 of 2010 regarding the Establishment of the Capital Markets Authority & Regulating Securities Activities.

Related Pages

In this section
  • CMA Law