EGYPT: EFSA Introduces Beneficial Ownership Reporting for Trust Funds

Friday April 7 2017

Amendments to Egypt’s Capital Market’s Executive Regulations, which govern beneficial ownership disclosures, have entered into force.

Beneficial ownership reporting is required in the following instances:

• The issuing of company shares;
• The amending of the ownership structure;
• The approving of mandatory and voluntary tender offers;
• IPO’s;
• The listing of securities on a stock exchange; and
• Any activity related to operating or participating in 10% or more of the share capital of a company.

In cases involving points 3 – 5 above, any legal person holding 25% or more of the issued share capital of the company (acting alone or in concert), a beneficial ownership disclosure will be required to be submitted.

The Egyptian Financial Supervisory Authority (EFSA) will disclose the:

• legal form;
• nationality;
• activity;
• the entity’s Board of Director’s;
• authorised signatories; and
• the ownership structure in cases of companies or mutual funds. Legal Persons holding 10% and 50% or more the share capital will be identified in the ownership structure.

Beneficial Ownership Reporting for Trust Funds

The amendments made to the Executive Regulations, have introduced beneficial ownership reporting for the first time to trust funds. The funds are required to report the governing law, trustor, trustee of the fund, their licence number, relationship between the trustor and trustee, the entity under their control and the terms granted to them regarding management of the fund(s).

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