Regulatory Alerts2019-01-01
Decision of the Board of Directors of the Financial Regulatory Authority No. 45 of 2019 Amending Certain Provisions Regulating Investment Fund Activities
The Financial Regulatory Authority (FRA) issued Decision No. 45 of 2019 to amend the investment controls for real estate investment funds. The regulation mandates that real estate investment funds targeting income-generating assets must maintain a minimum allocation of 70% of their total assets to such assets, which are defined as assets yielding periodic returns without requiring sale for income realization. Additionally, the decision permits the establishment of holding companies to found or participate in founding investment fund companies, while explicitly prohibiting these holding companies from conducting the activity themselves.
Financial Regulatory Authority
FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority
Decision of the Board of Directors of the Financial Regulatory Authority
No. (45) of 2019 dated 19/3/2019
Regarding the Amendment of Certain Provisions Regulating the Activity of Investment Funds
The Board of Directors of the Financial Regulatory Authority
Having reviewed the Capital Market Law issued by Law No. (95) of 1992 and its Executive Regulations; And Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; And Presidential Decree No. (197) of 2009 issuing the Basic Law of the Financial Regulatory Authority; And Board of Directors Decision No. (34) of 2014 regarding investment controls for real estate investment funds; And Board of Directors Decision No. (51) of 2014 regarding the conditions required for founders of an investment fund company; And upon approval by the Board of Directors in its session held on 19/3/2019.
Has Decided
(Article One)
The first and second paragraphs of Board of Directors Decision No. (34) of 2014 regarding investment controls for real estate investment funds are replaced with the following two paragraphs:
A real estate investment fund targeting investment in income-generating assets shall ensure that the proportion of such assets does not fall below 70% of the fund's total assets.
Income-generating assets refer to all assets that yield periodic returns, and their sale is not required to realize income,
And income-generating assets include the following:
(Article Two)
Holding companies may be established to conduct the activity of founding or participating in the founding of investment fund companies, And they are not permitted to conduct this activity themselves.
(Article Three)
This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the day following its publication in the Egyptian Gazette.
Chairman of the Board of Directors
Mohamed Omran
Chairman's Office
46076
Smart Village, Building no. B-136, Giza
Postal Code: 12577
Tel.: (00202) 35345350 - Fax.: (00202) 35370036
www.FRA.gov.eg
Smart Village, Building B-136, Giza, Egypt
Postal Code: 12577
Telephone: +202 35345350 - Fax: +202 35370036
info@fra.gov.eg