Regulatory Alerts2021-01-01
Circular Letter No. 21 of 2021 Regarding Investment Guidelines for Private Insurance Funds
The Financial Regulatory Authority issued Circular Letter No. 21 of 2021 to clarify the Fund Board's statutory responsibility for formulating investment policies and monitoring market channels under Law No. 54 of 1975, eliminating the need for prior Authority approval in standard operations. The circular mandates that "Other Investments," defined as non-listed channels capped at 5% of fund assets, require explicit no-objection clearance from the Authority. This directive operationalizes Board Decision No. 99 of 2015 by specifying the exact procedural requirement for these capped investments while affirming existing general investment limits.
FINANCIAL REGULATORY AUTHORITY
Deputy Chairman of the Authority
Circular Letter No. 21 of 2021 Issued on September 7, 2021 Regarding the Investment Guidelines for Private Insurance Funds
In line with the Authority's commitment to developing and diversifying private insurance fund investments for the benefit of their members amid financial and economic developments, and with reference to Board Decision No. 99 of 2015 concerning the rules and guidelines governing private insurance fund investment portfolio management, the Authority emphasizes that the Fund's Board of Directors bears responsibility, pursuant to Articles 27 and 35 of Law No. 54 of 1975, for managing fund affairs. This includes formulating and approving the fund's investment policies and monitoring available market investment channels amid economic developments, while adhering to the general limits and guidelines for fund asset deployment stipulated in Article 14 of the aforementioned Executive Regulations, as well as all related Authority decisions, without the need to obtain prior approval from the Authority.
Regarding Item 13 of Article 14 of the aforementioned Executive Regulations—Other Investments, which are investments outside the specifically listed channels in Article 14 and capped at a maximum of 5% of fund assets—the Authority emphasizes the necessity of obtaining a no-objection clearance from the Authority for these investments.
Deputy Chairman of the Board Financial Regulatory Authority Advisor / Rida Abdul Mu'ti
Smart Village, Building 136, Giza, Egypt Postal Code: 110 Phone: +202 35345350 | Fax: +202 35370036 WWW.FRA.GOV.EG
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