The Egypt Financial Regulatory Authority (FRA) amended its investor account protection framework for the securities market by requiring custody firms to ensure clients have a bank account with a bank registered at the Central Bank of Egypt and by expanding non-cash channels for distributing dividends and other investment returns. Under Board Decision No. 226 of 2025 amending Decision No. 61 of 2017, licensed custodians must verify the existence of the client’s bank account when opening a securities trading account and notify the central depository and registry with the relevant account details. Investors may also submit their bank account information through technology applications used by the central depository and registry and approved by the FRA. For dividend and return payments, investors can choose between direct bank transfer, transfer to the investor’s electronic wallet, technology-enabled mechanisms provided by the central depository and registry and approved by the FRA, a dedicated securities distribution ATM card, or other methods the FRA may approve in the future. Existing clients have one year to regularise their status by opening bank accounts in line with the amendment, and cash payment of dividends and returns may continue through the central depository and registry’s outlets during this transition period.
Egypt Financial Regulatory Authority 2025-10-22
Egypt Financial Regulatory Authority grants one-year transition to phase out cash dividend payouts and require bank accounts for securities clients
The Egypt Financial Regulatory Authority amended its investor account protection framework, requiring custody firms to ensure clients have accounts with Central Bank of Egypt-registered banks and expanding non-cash channels for distributing dividends. Licensed custodians must verify clients' bank accounts when opening securities trading accounts and notify the central depository. Investors can choose from various methods for dividend payments, including direct bank transfers and electronic wallets.