Secretariat of the Board of Directors

Decision of the Board of Directors of the Authority No. (47) of 2017

Dated 19/4/2017

Regarding the Conditions and Procedures for Registering Public Legal Entities

in the Register of Practitioners of Real Estate Financing Activity

Board of Directors of the Financial Regulatory Authority

Having reviewed the Law on Public Authorities issued by Law No. (61) of 1963; And the Law on Joint Stock Companies, Commandite Companies, and Limited Liability Companies issued by Law No. (159) of 1981 and its Executive Regulations; And the Law on Public Sector Authorities and Their Companies issued by Law No. (97) of 1983; And Law No. (148) of 2001 for Real Estate Financing, amended by Law No. 55 of 2014 and its Executive Regulations; And Law No. (10) of 2009 concerning the regulation of supervision over markets and non-banking financial instruments; And Presidential Decision No. (192) of 2009 issuing the Basic Statute of the Financial Regulatory Authority; And the memorandum from the Central Administration for Supervision and Oversight of Financing Companies dated 2/4/2017; And the approval of the Authority's Board of Directors in its session held on 19/4/2017.

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Has Decided

(Article One)

Conditions for Registering Public Legal Entities in the Register of Real Estate Financing Practitioners

The following conditions must be met by public legal entities wishing to register in the Register of Public Legal Entities and Companies to practice the real estate financing activity:

1. That its purposes stated in its founding deed permit the practice of the real estate financing activity.
2. That the responsible manager for the real estate financing activity possesses at least 10 years of experience in the credit field (banking fields, or real estate financing, factoring, financial leasing, and microfinance).
3. That the team responsible for managing the activity possesses the necessary administrative expertise and competence to practice this activity.
4. In the event the legal entity issues financial statements, it must commit to including real estate financing activity data within the supplementary notes to the financial position on a quarterly basis. If the legal entity does not prepare financial statements according to Egyptian accounting standards, it must commit to providing a financial disclosure statement regarding the activity as determined by the Authority.

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(Article Two)

Procedures for Registering Public Legal Entities in the Register of Real Estate Financing Practitioners

Public legal entities that meet the conditions stipulated in Article One of this Decision and wish to register in the Register of Public Legal Entities and Companies to practice the real estate financing activity must submit a license application to the Authority, accompanied by the following documents:

1. The founding deed/Articles of Association of the legal entity, according to the latest amendment.
2. Documentation confirming the availability of the experience stipulated in Article One of this Decision for the responsible manager of the real estate financing activity.
3. Documentation confirming the availability of necessary expertise and competence in the team managing the activity.
4. The names of the legal entity's auditors.
5. A statement clarifying the legal entity's objectives and plan for managing the activity.
6. A commitment to appoint at least one auditor from among those registered in the Authority's Register of Auditors for the real estate financing activity.
7. A commitment to comply with Real Estate Financing Law No. 148 of 2001, its Executive Regulations, amendments thereto, and relevant Authority decisions.
8. A commitment to provide the Authority with any data, information, or documents related to the activity as requested by the Authority.

All documents mentioned above must be certified by the legal representative of the legal entity.

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(Article Three)

The continued registration of any public legal entity in the register referred to in this Decision is contingent upon its compliance with the provisions of Real Estate Financing Law No. 148 of 2001, its Executive Regulations, amendments thereto, and Authority decisions issued in implementation thereof, and the entity's commitment to provide the Authority with any data, information, or documents related to the activity as requested by the Authority.

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(Article Four)

This Decision shall be published on the Authority's website and shall take effect from the day following its issuance. All relevant authorities are tasked with its implementation according to their respective jurisdictions.

Chairman of the Board of Directors

Sherif Samy

Office of the Chairman

Financial Regulatory Authority

47.76

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