Legal aspects to be followed in the investment portfolio management contract according to Egyptian law

Document Type : Original Article

Author

Faculty of Law – Mansoura University

Abstract

Investment portfolios are one of the most important types of modern investment, so the legislator has paid great attention to them - despite their modernity - by setting some controls for the parties to the contractual relationship, as well as the clauses to be included in the contract. It should be noted here that the Egyptian legislator dealt with some of the legal aspects of investment portfolios in the body of the law establishing the capital market,  This important investment activity has not been created by a separate law that regulates all its aspects and provides it with the required privacy, thus contributing to making it an activity that affects the economies of Egypt. The Egyptian legislator regulated the investment portfolio order in Law No. 95 of 1992, as amended by Law No. 58 of 1998 on the issuance of the Capital Market Law, which was published in the Official Gazette No. 25 bis on 22/06/1992. The executive regulation of this law was issued by the Minister of Economy and Foreign Trade Decree No. 135 of 1993. The provisions of investment financial portfolios came in Chapter Six of the Regulations, and all the provisions related to portfolios and the legal controls regulating them, as well as the rights and obligations of the parties to the contractual relationship in the portfolio, were clarified. They are the managing company and the portfolio holder or client. It is worth mentioning that the Egyptian legislator has not issued a law on investment portfolios, but the provisions regulating them are contained in the provisions of a general law regulating all types of commercial investment in the market, as mentioned above.

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