Central Bank of Egypt Board of Directors Resolution No. 66 of 2009 (Updated 2023) Regarding the Development Levy on Regulated Companies

Resolution of the Board of Directors of the General Authority for Financial Supervision No. (66) for the year 2009 Regarding the Development Levy imposed on companies subject to the Authority's supervision 1 According to the latest amendment dated 2023/3/8

President of the Board of Directors of the General Authority for Financial Supervision

Having reviewed:

• The Law on Supervision and Control of Insurance issued by Law No. 10 of 1981;
• The Capital Market Law issued by Law No. 95 of 1992;
• The Financial Leasing Law issued by Law No. 95 of 1995;
• The Central Depository and Registration of Securities Law issued by Law No. 93 of 2000;
• The Real Estate Financing Law issued by Law No. 148 of 2001;
• Law No. 10 of 2009 on the regulation of supervision over non-banking financial markets and instruments;
• And the approval of the Authority's Board of Directors in its session No. (9) held on 2009/11/23;

Has decided:

(Article One) Companies subject to the Authority's supervision are obligated to pay the Development Levy stipulated in Article (14) of the Law on the regulation of supervision over non-banking financial markets and instruments, and the rules and procedures mentioned therein, within the specified deadlines and according to the percentages provided in this Resolution and the attached table.

(Article Two)2 "For the purpose of applying the provisions of this Resolution, 'Gross Revenue' refers to: the total direct premiums for insurance companies, the total gross receivables for financial leasing companies, and the total gross commissions for securities brokerage companies."

(Article Three)3 "Companies are obligated to pay the Development Levy on their revenues every three months starting from 2010/10/1, within a maximum period of forty-five days from the end of the reporting period, based on the financial statements prepared by the company, with reference to the annual financial statements prepared by the company, and accompanied by the auditor's report. The amount due for the Development Levy must be settled within a period not exceeding three months from the end of the company's financial year. In case of delay in paying the Development Levy in the prescribed deadlines, companies are obligated to pay interest on the overdue amount, calculated daily based on the lending and borrowing rates announced by the Central Bank."

(Article Four)4 If a company engages in more than one activity subject to the Authority's supervision, the Development Levy is imposed on the total revenue and the highest applicable rate, provided that the company's financial statements include a separate section for the revenue of each activity. In the absence of a separate section for the revenue of each activity mentioned in the previous paragraph, the Development Levy is imposed on the total revenue at the highest applicable rate.

(Article Five)5 The Development Levy for holding companies is calculated based on independent financial statements.

(Article Six) The principal amount of the Development Levy is deposited in the bank account of the Authority, and an administrative unit is established within the Authority responsible for verifying the revenue of each company, following up on its settlement, calculating the interest for delay, and monitoring spending on the development areas stipulated in this Resolution, subject to prior approval from the President of the Authority.

(Article Seven)6 The principal amount of the Development Levy is earmarked for spending on the development of the work areas of companies subject to the Authority's supervision, including the development of methods, systems, risk assessment and management, financial governance rules, and the direct implementation of the Authority's work systems, facility qualification, and the development of skills and capabilities of employees in the markets, companies, and the Authority, specifically as follows:

• Development of the electronic disclosure system for the data and information required from companies engaged in activities subject to the Authority's supervision.
• Implementation of the electronic disclosure system for companies' financial statements.
• Execution of training programs for the Authority in cooperation with the Ministry of International Cooperation, the Ministry of State for Administrative Development, and the Information and Decision Support Center.
• Development of devices, software, and communication and connection links with 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 required for the establishment of the Financial Services Institute.
• Training Authority and market employees to support internal audit systems and enhance supervisory efficiency.
• Establishing the Market Services Unit at the Authority.
• Development of the Actuarial Unit.
• Development of investor awareness and education programs and dissemination of financial and investment culture.
• Development of global systems and preparation of qualified cadres to work within them.
• Establishment of the Accredited Rating Center at the Authority, and the development of the electronic website of the Authority and expanding the provision of electronic services for market participants and companies.
• Development of the licensing system for professionals and employees of companies through the expansion of electronic testing systems.
• Assisting and training company employees on the application of governance principles for each activity type.
• Development of the movable collateral system and the electronic registry necessary for it.
• Contributing to the preparation and qualification of the Authority's facilities to allow for the following:
  1. Providing suitable space for developing information systems in the aforementioned fields to enhance employee efficiency.
  2. Providing, equipping, and preparing suitable spaces for implementing work system development programs at the Authority.
  3. Providing, equipping, and preparing suitable spaces for developing the skills of Authority employees and those dealing with the activities supervised by the Authority.

(Article Eight) This Resolution is published in the Egyptian Gazette and on the Authority's electronic website, and shall be effective as of 2010/1/1.

(The item regarding the development of the movable collateral system and the necessary electronic registry was added by the Authority's Board of Directors Resolution No. 102 dated 2016/8/14.)

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

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 Re-financing: 2 per thousand

8. Securities Brokerage: 2 per thousand

9. Formation and Management of Securities Portfolios and Investment Funds: 2 per thousand

10. Investment Funds: 2 per ten thousand

11. Dealing, Brokerage, and Trading in Bonds: 1 per thousand

12. Underwriting and Covering of Securities Subscriptions: 2 per thousand

13. Participation 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. Valuation, Classification, and Rating of Securities: 2 per ten thousand

17. Valuation and Analysis of Securities: 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 in the Field of Investment Funds: 2 per thousand

23. Companies Listed on Securities Exchanges: 2 per ten thousand

24. Item 3 in the table was amended by the Authority's Board of Directors Resolution No. 30 of 2010 dated 2010/3/15.

25. Custody Companies: 1 per ten thousand

26. Microfinance Companies: 2 per ten thousand

27. Charitable Investment Funds: 1 per ten thousand of their total annual revenues, with a maximum of one thousand pounds.

28. Medium and Small Enterprise Financing: 2 per ten thousand

29. Consumer Financing: 2 per thousand

30. Item No. 24 regarding Custody Companies was added by the Authority's Board of Directors Resolution No. 125 dated 2016/10/16, effective as of 2017/1/1.

31. The activity of Microfinance Companies was added by the Authority's Board of Directors Resolution No. 119 dated 2017/9/13.

32. Charitable Investment Funds were added by the Authority's Board of Directors Resolution No. 59 dated 2019/4/30.

33. The activity of Medium and Small Enterprise Financing was added by the Authority's Board of Directors Resolution No. 202 dated 2020/12/27. The Development Levy is calculated when the activity of Medium and Small Enterprise Financing is conducted individually or jointly with the activity of Microfinance Financing.

34. The activity of Consumer Financing was added by the Authority's Board of Directors Resolution No. 202 dated 2020/12/27, with the Development Levy rate for this activity being 2 per thousand.