Regulatory Alerts2017-01-01
Financial Regulatory Authority Board Decision No. 86 of 2017
The Financial Regulatory Authority issued Board Decision No. 86 of 2017 to amend Article 43 of its microfinance regulations. The amendment mandates that credit portfolio transfers to a microfinance company must exclusively involve balances from licensed microfinance entities, banks, or securitization firms, and requires prior regulatory approval. Applicants must submit detailed portfolio data, collection responsibility terms, customer notification procedures, and internal board approval documentation, with the Authority retaining the right to request supplementary information.
Egyptian Official Gazette - Issue No. 165 on July 22, 2017
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Financial Regulatory Authority
Board Decision of the Authority
No. 86 of 2017
Dated June 20, 2017
Amending certain provisions of Board Decision No. 173 of 2014
Regarding the Rules and Regulations for Companies Practicing Microfinance Activities
Board of Directors of the Financial Regulatory Authority
Having reviewed the Law on Joint Stock Companies, Companies Limited by Shares, and Limited Liability Companies issued by Law No. 159 of 1981;
And the Capital Market Law issued by Law No. 95 of 1992;
And Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments;
And Law No. 141 of 2014 regulating microfinance activities;
And Presidential Decree No. 192 of 2009 issuing the Statute of the Financial Regulatory Authority;
And Board Decision No. 158 of 2014 regarding microfinance activity sectors and values;
And Board Decision No. 173 of 2014 regarding the rules and regulations for companies practicing microfinance activities;
And the approval of the Authority's Board of Directors in its session held on June 20, 2017;
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Egyptian Official Gazette - Issue No. 165 on July 22, 2017
Decided:
(Article One)
By replacing the text of the first paragraph of Article (43) of the aforementioned Board Decision No. 173 of 2014 with the following text:
« A credit portfolio shall not be transferred to the Company unless it pertains to microfinance balances from one of the licensed microfinance companies, associations, or non-governmental organizations, or a bank, or a securitization company, subject to obtaining prior approval from the Authority. The submitted application must include detailed information about the portfolio to be transferred, the entity from which the transfer originates, the responsibility for collecting the balances of that portfolio, and the method of notifying customers thereof. It must be accompanied by evidence of the Board of Directors' approval of the receiving Company regarding such transfer. The Authority may request the provision of any additional data. »
(Article Two)
This Decision shall be published in the Egyptian Official Gazette and on the Authority's website, and shall take effect from the day following its issuance date.
Chairman of the Board of Directors
Sherif Samy