Regulatory Alerts2021-01-01
Decision of the Board of Directors of the Authority No. (62) for 2021
The Financial Regulatory Authority (FRA) issued Decision No. 62 of 2021 to establish mandatory eligibility criteria for private insurance funds seeking regulatory approval to participate in investment fund companies. The decision mandates that qualifying funds maintain over EGP 100 million in invested capital, appoint a licensed full-time investment manager, secure an actuarial surplus covering the participation value, and ensure their total stake does not exceed 5% of their own funds or 25% of the target company's capital, whichever is lower. Furthermore, it requires compliance with established corporate governance rules, limits investments in the target company's issued documents to 20%, and stipulates that board members must have clean records for the past five years, with all provisions taking effect upon publication in the Egyptian Gazette.