The General Authority for Financial Supervision

Board of Directors Resolution No. 131 of 2023

Dated 7/6/2023

Regarding the conditions for registering in the Asset Revaluation Experts Register of the Authority

The Board of Directors of the General Authority for Financial Supervision

Having reviewed the Companies Law No. 159 of 1981 concerning joint stock companies, partnerships limited by shares, limited liability companies, and single-owner companies, and its executive regulations;

And the Capital Market Law No. 95 of 1992, and its executive regulations;

And Law No. 10 of 2009 regulating supervision over markets and non-banking financial instruments;

And the Central Bank, Banking System and Financial Institution Law No. 194 of 2020;

And Investment Minister Resolution No. 110 of 2015 concerning Egyptian Accounting Standards;

And GFSA Board Resolution No. 39 of 2015 concerning Real Estate Valuation Standards;

And GFSA Board Resolution No. 1 of 2017 concerning Financial Valuation Standards for Enterprises;

And GFSA Board Resolution No. 114 of 2018 concerning conditions for registering financial consulting companies and licensed entities to perform financial valuation and prepare fair value studies;

And after the approval of the Board of Directors in its session held on 7/6/2023;

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Resolved:

(Article 1)

Establishment of the Register

A register is established within the Authority for recording persons wishing to perform valuation work, named the "Asset Revaluation Experts Register".

The register shall include the main data of the registered valuation experts, as determined by the Authority.

Persons not registered in the register shall not perform any valuation work for asset revaluation purposes in accordance with Egyptian Accounting Standards.

The register is divided into several sections according to the assets to be valued, as follows:

• Section One: Financial consulting companies and licensed entities authorized by the Authority to perform financial valuation and prepare fair value studies.
• Section Two: Real estate asset valuation experts.
• Section Three: Machinery, equipment, and transport/transfer asset valuation experts.

(Article 2)

Conditions for registering natural persons in the register

A natural person wishing to register must meet the following conditions:

1. Be registered in the Authority's valuation experts list or be licensed as a valuation expert by the competent authority in the country where he acquired his expertise, regarding the registration of foreigners.
2. Possess professional competence and pass the examinations specified by the Authority for this purpose.
3. Undertake to provide a professional liability insurance policy throughout the registration period, in accordance with conditions set by the Authority commensurate with the size and scope of liabilities arising from the valuation work performed.

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(Article 3)

Conditions for registering legal entities in the register

A legal entity wishing to register must meet the following conditions:

1. Be registered in the register of financial consulting companies and licensed entities authorized by the Authority to perform financial valuation and prepare fair value studies, or in the Authority's valuation experts list, or in the expertise houses register of the Central Bank of Egypt.
2. The principal advisors designated by the Authority within the legal entity, who have the right to approve valuation reports issued by them, must possess good reputation, professional competence, and pass the examinations specified by the Authority for this purpose.
3. Undertake to provide a professional liability insurance policy throughout the registration period, in accordance with conditions set by the Authority commensurate with the size and scope of liabilities arising from the valuation work performed.
4. Pay the service fee referred to in Article Seven of this Resolution.

(Article 4)

Procedures for submitting the registration application to the register

The registration application to the register is submitted by natural or legal persons on the form prepared by the Authority for this purpose, accompanied by documents demonstrating compliance with the conditions set forth in Articles Two or Three of this Resolution, and any other documents deemed necessary by the Authority.

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(Article 5)

Liability for valuation work

The registered natural person or the responsible director of a registered legal entity shall be liable for the valuation work issued by them, and they are obligated to sign the valuation reports and fair value studies issued by them without delegation. They shall also be responsible for verifying that all related parties and their affiliated groups comply with the Authority's basic performance standards and valuation standards.

(Article 6)

Conditions for maintaining registration in the register

Maintaining the registration of natural and legal persons in the register requires compliance with the following:

1. Complying with the valuation standards issued by the Authority.
2. Meeting the conditions required for registration as stipulated in this Resolution.
3. Fulfilling the commitments stipulated in the registration application form or its renewal.

(Article 7)

Duration and fee for registration in the register

The registration period in the register is three years, and it shall be renewed for similar periods provided that the registration conditions remain met and continue.

The fee for examining and studying the registration application or its renewal is as follows:

1. Ten thousand Egyptian pounds for natural persons.
2. Twenty thousand Egyptian pounds for legal entities.

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(Article 8)

Administrative measures

The Board of Directors may, upon establishing a violation of any governing legislation, particularly the valuation standards issued by the Authority in this regard, or the loss of one of the registration or renewal conditions, take one or more of the following measures:

1. Issuing a notice of the specified violations and determining the time period necessary to remove their causes.
2. Temporary suspension of registration in the register for a period not exceeding one year.
3. Striking off the registration from the register, with no re-registration allowed until at least one year has passed.

The Board of Directors may also convene the board of directors of the legal entity, with a representative of the Authority present, to review the specified violations and take necessary steps to remove them.

(Article 9)

This Resolution shall be published in The Egyptian Gazette and on the Authority's website, and shall take effect from the day following its publication in The Egyptian Gazette.

Chairman of the Board
General Authority for Financial Supervision
Dr. Mohamed Fared Saleh

Printed by the General Authority for Royal Printing Affairs
Chairman of the Board
Accountant / Ashraf Imam Abdel Salam
Library of Congress Deposit No. 268 of 2023
76118 / 2023 - 2023/6/15 - 7.9