Regulatory Alerts2020-01-01
Decision No. 109 of 2020 of the General Authority for Financial Supervision amending auditor registration and rotation rules for licensed microfinance entities and general auditors
The General Authority for Financial Supervision issued Decision No. 109 of 2020 to amend the registration and rotation rules for auditors registered with the Authority. The decision mandates that auditors for licensed microfinance companies, associations, and non-profit institutions, as well as general auditors, be appointed annually and may serve a maximum of six consecutive years before mandatory rotation. Following this six-year term, auditors must be replaced by an independent professional not previously partnered with them, and the former auditor cannot be reappointed until three financial years have passed.
32 The Official Gazette - No. 171 dated July 29, 2020
General Authority for Financial Supervision Decision No. 109 of 2020 of the Authority Dated 23/06/2020 Amending the Authority's Board of Directors Decisions No. 161 of 2014 regarding the rules for registration, continuation of registration, and deletion in the register of auditors for microfinance companies, associations, and non-profit institutions licensed to conduct this activity with the Authority, and No. 84 of 2019 reorganizing the rules for registration, continuation of registration, and deletion in the register of auditors with the Authority.
The Board of Directors of the General Authority for Financial Supervision Having reviewed the Capital Market Law issued by Law No. 95 of 1992 and its Executive Regulations; Having reviewed Law No. 10 of 2009 on regulating supervision over non-banking financial markets and instruments; Having reviewed Law No. 141 of 2014 on regulating the microfinance activity; Having reviewed the Authority's Board of Directors Decision No. 161 of 2014 regarding the rules for registration, continuation of registration, and deletion in the register of auditors for microfinance companies, associations, and non-profit institutions licensed to conduct this activity with the Authority; Having reviewed the Authority's Board of Directors Decision No. 84 of 2019 reorganizing the rules for registration, continuation of registration, and deletion in the register of auditors with the Authority; Having reviewed the Authority's Board of Directors Decision No. 100 of 2020 on corporate governance rules for companies operating in non-banking financial activities; And after approval by the Authority's Board of Directors in its meeting held on 23/06/2020;
33 The Official Gazette - No. 171 dated July 29, 2020
Decided:
(Article One) A third paragraph is added to Article One of the Authority's Board of Directors Decision No. 84 of 2019 reorganizing the rules for registration, continuation of registration, and deletion in the register of auditors with the Authority, the text of which is as follows: (Article One - Third Paragraph): The auditor shall be appointed annually and may be renewed for a maximum of six consecutive years, provided that they are thereafter replaced by another independent auditor who is not professionally partnered with the replaced auditor, and shall not be reappointed until three financial years have elapsed from the expiration of the aforementioned six years.
(Article Two) A second paragraph is added to Article One of the Authority's Board of Directors Decision No. 161 of 2014 regarding the rules for registration, continuation of registration, and deletion in the register of auditors for microfinance companies, associations, and non-profit institutions licensed to conduct this activity with the Authority, the text of which is as follows: (Article One - Second Paragraph): The auditor shall be appointed annually and may be renewed for a maximum of six consecutive years, provided that they are thereafter replaced by another independent auditor who is not professionally partnered with the replaced auditor, and shall not be reappointed until three financial years have elapsed from the expiration of the aforementioned six years.
34 The Official Gazette - No. 171 dated July 29, 2020
(Article Three) The aforementioned six years referred to in Articles One and Two of this Decision shall be calculated from the date of the auditor's appointment.
(Article Four) This Decision shall be published in The Official Gazette and on the Authority's website, and shall take effect from the day following its publication in The Official Gazette.
Chairman of the Board of Directors of the Authority Dr. Mohamed Omran