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2013-01-01

Decision of the Board of Directors of the Financial Regulatory Authority No. (43) of 2013

The Financial Regulatory Authority (FRA) issued Decision No. 43 of 2013 to amend specific provisions of its previous Decision No. 36 of 2013 governing the marketing of insurance products through licensed banks. The amended decision mandates that insurance companies maintain sufficient technical provisions to meet policyholder obligations prior to license applications, establish dedicated in-branch marketing units with adequate staffing before commencing operations, and clearly define the financial compensation structure for banks regarding fees and commissions. Additionally, the decision repeals a specific item from Article Three of the prior regulation and renumbers the remaining provisions accordingly, with the amendments taking effect the day after publication in the Egyptian Gazette.

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Decision of the Board of Directors of the Financial Regulatory Authority

No. (43) of 2013

Dated 18/6/2013

Amending Certain Provisions of the Board of Directors Decision No. (36) of 2013

Regarding the Marketing of Insurance Company Products through Banks Licensed by the Central Bank

Board of Directors of the Financial Regulatory Authority

Having reviewed the Law on Supervision and Regulation of Insurance in Egypt issued by Law No. (10) of 1981 and its Executive Regulations;

and the Law No. (10) of 2009 on Regulating Supervision over Non-Banking Financial Markets;

and the Statutes of the Financial Regulatory Authority issued by Presidential Decree No. (192) of 2009;

and the Board of Directors Decision of the Financial Regulatory Authority No. (36) of 2013 regarding the marketing of insurance company products through banks licensed by the Central Bank;

and the approval of the Authority's Board of Directors at its meeting held on 18/6/2013;

Has Decided

(Article One)

The following texts shall replace the provisions of Item (2) of Article One, Item (1/5) of Article Two, and Item (4) of Article Three of the Board of Directors Decision No. (36) of 2013:

Item (2) of Article One:

  • The company must have sufficient technical provisions to meet its obligations to policyholders, in accordance with the provisions of Article (37) of Law No. 10 of 1981, as reflected in the company's financial statements for the financial year preceding the license application, while observing the application of Articles (25) and (26) of the Executive Regulations of that Law.

Item (1/5) of Article Two:

  • The insurance company must have a marketing unit within the bank's branches, comprising a sufficient team of staff before commencing operations.

Item (4) of Article Three:

  • The financial compensation due to the bank in the form of fees, commissions, and similar payments, and the basis for calculating them.

(Article Two)

Item (5) of Article Three of the Board of Directors Decision No. (36) of 2013 is hereby repealed, with the remaining items of the Article renumbered accordingly.

(Article Three)

This Decision shall be published in the Egyptian Gazette and shall take effect from the day following its publication date.

Chairman of the Board of Directors
Ashraf El-Sharqawy
Dr.

Financial Regulatory Authority
Office of the Chairman
47076

Headquarters: Smart Village, Building 15 B
Km 68, Cairo-Alexandria Desert Road
Giza Governorate, Postal Code: 12577

Tel: 202 2537 0040 - Fax: 202 2537 0041
Email: info@efsa.gov.eg
Website: www.efsa.gov.eg

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