Decision of the Board of Directors of the Financial Regulatory Authority No. 66 of 2009 (as last amended)

Decision of the Board of Directors of the Financial Regulatory Authority No. (66) of 2009 Regarding the Development Fee Imposed on Companies Subject to the Authority's Supervision 1 As last amended on 8/3/2023

Chairman of the Board of Directors of the Financial Regulatory Authority Having reviewed the Law on Supervision and Regulation of Insurance issued by Law No. 10 of 1981, and the Capital Market Law issued by Law No. 95 of 1992, and the Financial Leasing Law issued by Law No. 95 of 1995, and the Central Depository and Registration of Securities Law issued by Law No. 93 of 2000, and the Real Estate Financing Law issued by Law No. 148 of 2001, and Law No. 10 of 2009 on regulating supervision over non-banking financial markets and instruments, and the approval of the Authority's Board of Directors in its meeting No. (9) held on 23/11/2009, Has decided:

(Article 1) Companies subject to the Authority's supervision are obligated to pay the development fee stipulated in Article (14) of the Law on regulating supervision over non-banking financial markets and instruments, in the deadlines, paragraphs, rules, procedures, and percentages set forth in this Decision and its attached table.

**(Article 2)**2 "The revenue on which the development fee is paid – for the application of the provisions of this Decision – refers to the total direct premiums for insurance companies, the total recorded returns for financial leasing companies, and the total recorded commissions for securities brokerage companies."

**(Article 3)**3 "Companies are obligated to pay the development fee on their revenues every three months starting from 1/10/2010 within a maximum period of forty-five days from the end of the payment period, based on the financial statements prepared by the company. The amounts related to the development fee shall be settled annually by the company, accompanied by the auditor's report, within a period not exceeding three months from the end of the company's financial year. In case of delay in paying the development fee within the stipulated deadlines, companies are obligated to pay interest on the overdue fees, calculated daily based on the lending rate announced by the Central Bank." In case of payment delay, companies are obligated to pay interest on the overdue fees, calculated daily based on the lending rate announced by the Central Bank.

**(Article 4)**4 In the event that a company engages in more than one activity subject to the Authority's supervision, the development fee shall be calculated based on the fee category applicable to it, provided that the company's financial statements separate the returns of each activity individually and the revenues of each activity. In the absence of a separate breakdown between the revenues of each activity mentioned in the preceding paragraph, the development fee shall be calculated on the total revenues based on the highest fee category.

**(Article 5)**5 The development fee for holding companies shall be calculated based on standalone financial statements.

(Article 6) The principal amount of the development fee shall be deposited in the account designated for the Authority, and an administrative unit shall be established within the Authority responsible for verifying the revenue of each company, monitoring its payment, calculating interest for delays, and overseeing expenditures on development purposes stipulated in this Decision, subject to prior approval from the Chairman of the Authority.

**(Article 7)**6 The principal amount of the development fee shall be allocated to developing the working areas of companies subject to the Authority's supervision, including methods, systems, risk assessment and management, and financial regulations, as well as implementing systems directly related to the Authority's operations, qualifying its facilities, and developing the skills and capabilities of employees in the markets, companies, and the Authority, specifically as follows:

• Developing the electronic disclosure system for forms and data required by companies engaged in activities subject to the Authority's supervision.
• Implementing the electronic disclosure system for companies' financial statements.
• Implementing the Authority's institutional development programs in cooperation with the Ministry of International Cooperation, the Ministry of State for Administrative Development, and the Information and Decision Support Center.
• Developing hardware, software, and connectivity and communication means for companies subject to the Authority's supervision, in addition to developing their databases at the Authority.
• Conducting studies and preparing training programs and administrative systems necessary for establishing the Financial Services Institute.
• Training Authority and market employees to support internal audit systems and enhance supervisory efficiency.
• Establishing the Market Services Committee at the Authority.
• Developing the actuarial supervision unit.
• Developing investor awareness and education programs and disseminating financial and investment culture.
• Implementing global systems and preparing qualified personnel to work with them.
• Establishing the accredited rating center at the Authority, and
• Developing the Authority's electronic website and expanding the provision of electronic services to market participants and companies.
• Developing the licensing system for professionals and company employees through expanding electronic testing systems.
• Applicable to each activity.
• Assisting and training company employees on applying corporate governance principles, and
• Developing the movable collateral system and its required electronic registry
• Contributing to preparing and qualifying the Authority's facilities to allow the following: .1 Providing suitable spaces for developing information systems in the aforementioned fields to enhance employee efficiency. .2 Providing, equipping, and preparing suitable spaces for implementing work system improvement programs at the Authority. .3 Providing, equipping, and preparing suitable spaces for developing the skills of Authority employees and market participants in the fields of activities supervised by the Authority.

(Article 8) This Decision shall be published in the Egyptian Gazette and on the Authority's electronic website, and shall take effect from 1/1/2010

Footnotes: 1 Decision No. 66 was amended on 7/12/2009 pursuant to Board Decision No. 30 on 15/3/2010, Board Decision No. 82 on 23/12/2013, Board Decision No. 92 on 9/6/2014, Board Decision No. 102 on 14/8/2016, Board Decision No. 125 on 16/10/2016, Board Decision No. 119 on 13/9/2017, Board Decision No. 59 on 30/4/2019, Board Decision No. 90 on 16/7/2019, and Board Decision No. 53 on 8/3/2023. 2 Article 2 was replaced by Board Decision No. 30 of 2010 dated 15/3/2010. 3 Article 3 was replaced by Board Decision No. 30 of 2010 dated 15/3/2010. 4 Article 4 was amended pursuant to Board Decision No. 82 of 2013 dated 23/12/2013. 5 Article 5 was interpreted pursuant to Board Decision No. 90 of 2019 dated 16/7/2019, and subsequently replaced by Board Decision No. 53 of 2023 dated 8/3/2023. 6 The text of Article 7 was replaced by Board Decision No. 92 of 2014 dated 9/6/2014.

• The item regarding the development of the movable collateral system and its required electronic registry was added pursuant to Board Decision No. 102 dated 14/8/2016. 7 Item 3 in the table was amended pursuant to Board Decision No. 30 of 2010 dated 15/3/2010. 8 Item 24 regarding the activity of custodian companies was added pursuant to Board Decision No. 125 dated 16/10/2016, to take effect from 1/1/2017. 9 The activity of microfinance companies was added pursuant to Board Decision No. 119 dated 13/9/2017. 10 Charitable investment funds were added pursuant to Board Decision No. 59 dated 30/4/2019. The activity of medium and small enterprise financing was added by Board Decision No. 202 dated 27/12/2020, and the development fee shall be calculated when the medium and small enterprise financing activity is conducted individually or jointly with the microfinance activity. The consumer financing activity was added by Board Decision No. 202 dated 27/12/2020, with a development fee rate of 2 per thousand of total revenues for this activity.

Attachment to Decision No. 66 of the Board of Directors of the Financial Regulatory Authority dated 7/12/2009 Development Fee Percentage of Total Revenues for Activities Subject to the Authority's Supervision

No.	Activity	Fee Rate
1	Financial Leasing	2 per thousand
2	Factoring	2 per thousand
3	Insurance and Reinsurance	2 per thousand for Property and Liability activities, and 1 per thousand for Life activities
4	Insurance Consulting	2 per ten thousand
5	Insurance Brokerage	2 per thousand
6	Insurance Surveying	2 per ten thousand
7	Real Estate Financing and Refinancing	2 per thousand
8	Securities Brokerage	2 per thousand
9	Portfolio Management and Investment Funds	2 per thousand
10	Investment Funds	2 per ten thousand
11	Trading, Brokerage, and Dealing in Bonds	1 per thousand
12	Underwriting and Subscription Coverage for Securities	2 per thousand
13	Participating in the establishment of companies issuing securities or increasing their capital	2 per ten thousand
14	Venture Capital	1 per thousand
15	Clearing, Settlement, and Central Depository	2 per thousand
16	Securities Valuation, Rating, and Ranking	2 per ten thousand
17	Securities Valuation and Analysis	2 per ten thousand
18	Information Dissemination	2 per thousand
19	Securitization of Financial Rights	1 per ten thousand
20	Financial Consulting	2 per ten thousand
21	Market Maker	2 per thousand
22	Management Services for Investment Funds	2 per thousand
23	Companies Listed on Securities Exchanges	2 per hundred thousand
24	Custodian Companies	1 per ten thousand
25	Microfinance Companies	2 per ten thousand
26	Charitable Investment Funds	2 per ten thousand of total annual revenues, capped at 1,000 EGP.
27	Medium and Small Enterprise Financing	2 per ten thousand
28	Consumer Financing	2 per thousand