Regulatory Alerts2014-01-01
Decision of the Board of Directors of the Authority No. (171) of 2014
The Egyptian Financial Supervisory Authority issued Decision No. 171 of 2014 to establish mandatory service fees for entities licensed to conduct microfinance activities under Law No. 141 of 2014. Licensed companies must pay a 10,000 Egyptian pound fee for temporary license review and a quarterly supervision fee calculated at 0.5 per thousand of their average client financing balances, while licensed associations and non-profit institutions pay a 500 Egyptian pound license review fee and a quarterly supervision fee of 0.25 per thousand of their average client financing balances. All supervision and control fees are due within six weeks following the end of each quarter and the decision takes effect the day after its publication in the Official Gazette and on the Authority's website.
Chairman of the Board of Directors
Decision of the Board of Directors of the Authority No. (171) of 2014
Dated 21/12/2014
Regarding Service Fees for Entities Operating in the Microfinance Activity
Board of Directors of the Egyptian Financial Supervisory Authority
Having reviewed Law No. (10) of 2009 on Regulating Supervision over Markets and Financial Instruments;
Non-Banking;
and Law No. (141) of 2014 on Regulating the Microfinance Activity;
and Presidential Decree No. (192) of 2009 Issuing the Basic Statute of the Egyptian Financial Supervisory Authority;
and Decision of the Board of Directors of the Authority No. (158) of 2014 Regarding Microfinance Activity Areas;
and its evaluation;
and upon the approval of the Board of Directors of the Authority in its meeting No. (22) held on 21/12/2014;
Decided:
(Article One)
The Authority shall collect service fees from companies licensed by the Authority to conduct the microfinance activity in accordance with the provisions of Law No. (141) of 2014, as follows:
- A service fee for reviewing the temporary license application amounting to 10,000 Egyptian pounds.
- A supervision and control cost fee at a rate of half per thousand (500 Egyptian pounds per million) of the average financing balance provided to the company's clients, calculated and paid quarterly.
Companies shall pay the supervision and control cost fees within a period not exceeding six weeks from the end of each quarter.
(Article Two)
The Authority shall collect service fees from associations or non-profit institutions conducting the microfinance activity in accordance with the provisions of Law No. (141) of 2014, as follows:
- A service fee for reviewing the temporary license application amounting to 500 Egyptian pounds.
(Article Three)
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.
Chairman of the Board of Directors
Sherif Samy
Egyptian Financial Supervisory Authority
Chairman's Office
47076
Egyptian Financial Supervisory Authority
Egyptian Financial Supervisory Authority
Board of Directors Secretariat
- A supervision and control service fee at a rate of a quarter per thousand (250 Egyptian pounds per million) of the average financing balance provided to the association's or institution's clients, calculated and paid quarterly.
Associations or non-profit institutions shall pay the supervision and control service fees within a period not exceeding six weeks from the end of each quarter.
Chairman of the Board of Directors
Sherif Samy
Egyptian Financial Supervisory Authority
Chairman's Office
47076
Source:
20 Sh. Emad El-Din - Cairo - Egypt
Email: info@efsa.gov.eg
Website: www.efsa.gov.eg
Postal Code: 11111
P.O. Box: 718
Telephone: (02) 27737133
Fax: (02) 27741000