Regulatory Alerts2014-01-01
General Authority for Financial Supervision Board Decision No. 19 of 2014 Concerning Insurance and Reinsurance Companies Contracting to Manage Reserved Funds Investment Portfolios
The General Authority for Financial Supervision issued Board Decision No. 19 of 2014 to regulate how Egyptian insurance and reinsurance companies may outsource the management of reserved funds investment portfolios to licensed securities portfolio managers or investment funds. The decision mandates strict eligibility criteria for external managers, including a minimum three-year operational history, a 200 million EGP average portfolio value, and concentration limits capping outsourced assets at 30% of the manager's total book and 50% of the insurer's total reserved funds. It further requires formal board approval, detailed contractual safeguards covering investment policies and conflict-of-interest protocols, quarterly fund reporting, and immediate submission of executed contracts to the Authority within one week.