Regulatory Alerts2009-01-01
Egyptian Financial Supervisory Authority Decision No. (88) of 2009 Regarding Regulations for Investment Fund Management Service Companies
The Egyptian Financial Supervisory Authority (EFSR) issued Decision No. 88 of 2009 to establish operational and governance regulations for licensed management service companies handling investment funds. The decision mandates that open-end and real estate funds contract exclusively with EFSR-licensed service providers, outlines their specific duties including transaction settlement, NAV calculation, and dividend supervision, and enforces strict corporate requirements such as a minimum two-million-EGP paid-up capital and Egyptian joint-stock structure. Furthermore, it prohibits cross-ownership exceeding 20% between funds, sponsors, or management companies and the service providers, mandates strict confidentiality protocols, and sets a six-month compliance deadline for existing funds to formalize these contracts.