The Board of Administrators of the Monetary Regulatory Authority (FRA), headed by Mohamed Farid, issued Decision No. 249 of 2023, amending the Authority’s Board of Administrators Decision No. 53 of 2018. The brand new decision units the principles for granting a licence to personal shares in non-banking monetary firms. It goals to control the participation and possession of firms which might be below the Authority’s supervision. It will assist obtain monetary stability for non-banking monetary establishments and allow them to supply their providers to prospects effectively and successfully. FRA ensures the security and stability of non-banking monetary markets, regulates and develops them, and balances the rights of all transacting events.
The decision stipulates that the minimal share of the monetary establishment’s contribution to the capital of non-banking monetary firms is 25% of the corporate’s capital. The decision additionally stipulates that girls should have no less than 25% illustration on the board of administrators.
Moreover, the decision specified some necessities for firms working in sure non-banking monetary actions, reminiscent of insurance coverage firms.
Furthermore, the decision states that insurance coverage and reinsurance firms should personal no less than 25% of the capital of any firm wishing to observe insurance coverage exercise, offered that it has a credit standing from one of many worldwide score businesses.
The decision outlined the certified investor as a pure individual with no less than 10 years of expertise within the discipline of cash administration and funding, direct funding, or fields associated to non-banking monetary actions, offered that the worth of the liquid belongings, securities, or monetary devices owned is a minimum of EGP 10m.
The decision obligated firms to finish the incorporation procedures inside six months from the date of the Authority’s preliminary approval. The Authority could prolong that interval based mostly on justifications accepted by the Authority. The businesses should additionally begin working inside six months from the date of acquiring the license, which can be prolonged after the Authority’s approval.
