Backdrop👈 Earlier this month, the FRA issued a statement banning the publishing of recommendations & advice related to EGX-listed securities on social media platforms.
More Details🧐 The details of that statement include progressive penalties, in the form of three stages of punishment, according to Al Mal.
The first stage, where no benefits or harms result from the publishing, includes a fine ranging from EGP 50,000 to EGP 1 million, or imprisonment, or both.
The second stage, where the advisor benefits from publishing recommendations, is a penalty of & a fine ranging from EGP 1 million to EGP 10 million.
In the third stage, where publishing recommendations harm the market, a prison sentence of 3 to 10 years will be imposed, in addition to a fine of more than EGP 10 million.
Why is this Important🤔 The EGX witnessed unjustified increases for certain stocks fueled by insider trading. The FRA was prompted to investigate those traders & take sharper measures to ensure fair trading on the EGX.
