Regulatory Alerts2020-01-01
Decision No. (132) of 2020 of the Authority's Board of Directors Regarding the Rules for Participation in the Capital of Insurance Companies
The Financial Regulatory Authority (FRA) of Egypt issued Decision No. (132) of 2020 to regulate direct or indirect share participation by controlling stakeholders in insurance companies. The decision prohibits natural or legal persons holding a controlling stake in one insurer from investing in any other insurance company engaged in the same activity beyond a 25% threshold, unless accompanied by a binding merger plan executed within one year. Violations result in the suspension of voting rights and dividends on excess shares, with mandatory divestment within one year or forced sale by an appointed brokerage firm.
Share