Regulatory Alerts2010-01-01
Egyptian Financial Supervisory Authority Board Decision No. (20) of 2010 dated 15/3/2010
The Egyptian Financial Supervisory Authority (EFSA) issued Board Decision No. 20 of 2010 to amend the Development Fee regulations applicable to supervised insurance, financial leasing, and securities brokerage companies. The decision redefines "revenue" for fee calculation purposes and mandates quarterly fee payments within 45 days of each quarter's end, with annual settlements due within three months of the fiscal year close. Additionally, it updates the fee rates to one per thousand for property and liability insurance and three per thousand for life and capital formation programs, while imposing daily interest on late payments based on Central Bank rates.
Egyptian Financial Supervisory Authority (EFSA)
Board Decision
Egyptian Financial Supervisory Authority
No. (20) of 2010 dated 15/3/2010
Chairman of the Board of the Egyptian Financial Supervisory Authority
Having reviewed Law No. 10 of 1981 on the Supervision and Control of Insurance issued by Law No. 10 of 1981. And Law No. 95 of 1992 on the Capital Market. And Law No. 95 of 1995 on Financial Leasing. And Law No. 93 of 2000 on the Central Depository and Registry for Securities. And Law No. 148 of 2001 on Real Estate Financing. And Law No. 10 of 2009 on the Regulation of Supervision over Non-Egyptian Markets and Financial Instruments. And Board Decision No. 62 of 2009 of the Egyptian Financial Supervisory Authority regarding the Development Fee imposed on companies subject to the Authority's supervision. And the Board's approval at its meeting No. 4 dated 15/3/2010.
Decided
Article (1)
The following replace Articles Two and Three of the Egyptian Financial Supervisory Authority's Decision regarding the Development Fee imposed on companies subject to the Authority's supervision No. 62 of 2009:
Article Two:
"The term 'Revenue', upon which the Development Fee is calculated - in applying the provisions of this Decision - means: total direct premiums for insurance companies, total returns collected for financial leasing companies, and total commissions collected for securities brokerage companies."
Article Three:
"Companies are obligated to calculate and pay the Development Fee on their revenues every three months (starting from 1/1/2010), within a maximum period of forty-five days from the end of the accounting period, based on the financial statements prepared by the company. The amounts related to the Development Fee shall be settled annually based on the company's financial statements, accompanied by the auditor's report, within a period not exceeding three months from the end of the company's fiscal year. In case of delay in paying the fee by the stipulated deadlines, companies are obligated to pay interest on the overdue fees, calculated daily based on the lending and discount rates announced by the Central Bank."
Article (2)
Item (3) of the table attached to the Authority's Decision No. 62 of 2009 is amended as follows:
| Development Fee Rate as a Percentage of Total Revenues | Activities Subject to Authority Supervision |
|---|---|
| One per thousand for Property and Liability activities | Insurance and Reinsurance |
| Three per thousand for Life and Capital Formation activities | Life Insurance and Capital Formation Programs |
Article (3)
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.
Dr. Ziad Bihaueddin
Chairman of the Authority
Egyptian Financial Supervisory Authority
Chairman's Office
46076