Regulatory Alerts2020-01-01
Decision of the Board of Directors of the Financial Regulatory Authority No. 45 of 2020 Regarding Professional Liability Insurance for Licensed Financial Consulting and Valuation Entities
The Financial Regulatory Authority (FRA) issued Decision No. 45 of 2020 mandating that licensed property and liability insurers must enforce specific professional liability coverage for financial consulting and valuation entities registered or seeking registration with the FRA. The decision requires insurance policies to explicitly cover violations of Egyptian Financial Valuation Standards and professional performance guidelines, with coverage amounts set at double the entity's annual premium income but not less than 100,000 Egyptian Pounds. Additionally, policies must maintain a minimum three-year term and can only be cancelled upon formal written instruction from the Authority, with the regulation taking effect the day after its publication in the Egyptian Gazette.