FSA Receives 378 Complaints Against Securities Companies

The Financial Supervisory Authority (FSA) received 317 complaints against financial securities companies working between January and November 2014, in addition to 62 ongoing complaints, according to FSA President Sherif Samy.

Samy added in a statement released by the FSA Sunday that the authority studied 316 complaints over 11 months, bringing the number of complaints being studied to 62 by the end of November.

Samy added that the FSA studied the complaints, all related to buying and selling according to blank orders, and selling through an agent. It also included the buying and selling with funding from a company that exceeds the financial capacity of the client, without taking into account the purchase margin conditions.

“79 complaints have been closed during 11 months by 25% of the total number of complaints that have been investigated because of removal of the causes and the waiver, lack of evidence of complainant eligibility, lack of validity of the complaint, or lack of seriousness,” said Samy.

He revealed that investigation procedures have been taken and criminal action was brought in 136 cases in the light of fraud, manipulation irregularities of companies and clients, and legal irregularities.

The FSA decided not to take investigation procedures or bring a criminal action in 33 cases, in addition to 96 cases completed through reconciliation.

The number of approvals for the establishment of new companies’ shares and increase in existing companies’ capital from January until November 2014 reached 3,144 approvals worth EGP 35.4bn, according to the statement.

The paid-up value in companies’ establishment and capital increase for listed companies witnessed a growth rate of 5%.

“There were 24 licences granted to companies operating in the securities market in the areas of fund management, portfolio management, financial consulting, custodians, investment funds, market maker and participation in companies’ establishment. Meanwhile 14 licences were given to companies for the same period in 2013, with a total of 514 companies receiving licences,” the statement said.

The number of applicants passing the tests, held by the FSA, to work in the securities field between January and the end of October, reached 435 applicants. This compared to 428 applicants during the same period last year. Only 51 applicants passed the tests in November.

The FSA has inspected 432 operating companies in the field of capital market until the end of November, compared to 372 inspections during the same period of the previous year.

Source: Daily News Egypt