Regulatory Alerts2021-01-01
Board of Directors Decision No. (171) of 2021 Amending Decision No. (53) of 2018 on Licensing Controls and Share Ownership Rules for Non-Banking Financial Companies
The Financial Regulatory Authority's Board of Directors issued Decision No. (171) of 2021, amending Decision No. (53) of 2018 to introduce comprehensive rules for Special Purpose Acquisition Company (SPAC) activity. These new regulations, spanning Articles Twelve bis to Twelve bis 11, define SPACs, their founders, target companies, and trust accounts, while setting capital requirements, acquisition timelines, and governance standards. It mandates SPACs to be licensed as venture capital companies, maintain a minimum capital of EGP 100 million after offerings, complete acquisitions within two years, and provides for investor protection including exit options for dissenting shareholders.
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