Financial Regulatory Authority

FINANCIAL REGULATORY AUTHORITY

Chairman of the Authority

Board of Directors Decision No. (95) of 2019 dated 2019/8/4

Amending Board of Directors Decision No. (163) of 2018

Regarding the Executive Controls for Conducting Factoring Activities

The Board of Directors of the Financial Regulatory Authority

Having reviewed Law No. (10) of 2009 concerning the regulation of supervision over non-banking financial markets and instruments;

and Law No. (176) of 2018 concerning the regulation of financing leasing and factoring activities;

and Presidential Decree No. (192) of 2009 issuing the Basic Statute of the Financial Regulatory Authority;

and Board of Directors Decision No. (8) of 2014 concerning the regulation of the work of Sharia Supervisory Boards for financial products issued in accordance with Islamic Sharia provisions;

and Board of Directors Decision No. (163) of 2018 concerning the executive controls for conducting factoring activities;

and upon the approval of the Authority's Board of Directors in its meeting held on 2019/8/4:

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Provisions

(Article One)

A new article numbered (Seventeenth – Factoring Compliant with Islamic Sharia Provisions) is added to the Authority's Board of Directors Decision No. (163) of 2018 concerning the executive controls for conducting factoring activities, with the following text:

The factor, when advertising or promoting any factoring product as compliant with Islamic Sharia provisions and securing this in the contract concluded between it and the client, must obtain prior approval from a Sharia Supervisory Board established for this purpose in accordance with the Authority's Board of Directors Decision No. (8) of 2014 concerning the regulation of the work of Sharia Supervisory Boards compliant with Islamic Sharia provisions. This is to review all conditions stipulated in the contract and verify their compliance with Islamic Sharia provisions. All publications issued by the factor regarding the relevant factoring product must state that it is Sharia-compliant according to the Board's opinion.

(Article Two)

This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the day following its publication in the Egyptian Gazette.

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Chairman of the Board of Directors

Dr. Mohamed Omran

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Smart Village, Building No. 136, Giza, Egypt Postal Code: 12577 Tel.: +202 35345350 - Fax: +202 35370036 info@fra.gov.eg