General Coverage Rules
General Coverage Rules
- The indemnification paid by the Fund to the clients or shareholders of the member companies may not exceed (10 %) of its available resources, in any single case, according to the latest annual or interim financial statements supported by a report by the Fund’s auditors. The reimbursed indemnifications during the financial year may not exceed the Fund’s total revenues from periodic subscriptions, plus all the returns generated from the Fund’s money, including returns on investments of its assets for the preceding financial year. In the event that the required coverage amount exceeds the available funds, the available amount for each member company shall be allocated and distributed among its clients and shareholders pro rata to the value of their respective securities, financial instruments, and cash balances, as per the rules set by the Fund’s Board of Directors.
- The Fund may indemnify the clients of its member companies operating in the field of securities and financial instruments by purchasing the same securities and financial instruments on their behalf for an amount equivalent to the indemnification due to them from the Fund, in accordance with the rules issued by a resolution of the Fund’s Board of Directors.
- The Fund shall indemnify the shareholders of the member company holding freely tradable securities and financial instruments at an amount equivalent to the average closing price of the security or financial instrument during the last three months in which trading has taken place. In the event of no trading activity on such security or financial instrument, the indemnification shall be calculated based on the fair value determined by an independent financial advisor appointed by the Authority from among its registered advisors, with the Fund bearing the cost of such advisor’s fees.
- The Fund shall not be liable to indemnify for any financial losses resulting from changes in the value of the client’s securities and financial instruments traded in the market, or from the loss or missed opportunities of investing his funds through the member companies operating in the field of securities or financial instruments.
- The Fund shall not indemnify any occurrence preceding the date of its establishment on 4/11/2004 for companies operating in the field of securities and on 1/10/2019 for companies whose securities or financial instruments are listed on the Egyptian Exchange.
- The Fund shall not indemnify any damages related to securities not listed on the Egyptian Stock Exchange.
