Foreign broker's legal position in the stock market (Comparative study)

Abstract

The study aimed to know the position of the legislator of Egypt, Lebanon and Jordan to recognize foreign companies to practice the profession of financial intermediation in the stock market، and the legal implications thereof.

The study reached a set of results, the most important of which is the recognition of the legislation under study by foreign companies to practice the profession of financial intermediation in the stock exchange.

The recognition of the comparative legislation of the foreign financial intermediary has resulted in a number of effects, such as the right to receive commission for the services provided to customers, the right to request cover, the right to practice execute in the market, the commitment to conclude an account opening contract with each client, to submit statements and reports to the stock exchange، to enable regulatory bodies to perform their supervisory role over the company.

The study recommended that the legislation shall include a special provision that includes the conditions of the foreign financial intermediary. In particular, the requirement of reciprocity, the need to stipulate in the securities legislation the commissioning of foreign intermediaries, in addition to setting a higher and lower end of the commission, The right to obtain adequate guarantees to ensure that investors meet their obligations, and the establishment of a special technical committee of the regulatory bodies, whose task is to periodically inspect the foreign brokerage firms dealing in the stock exchange.