Regulatory Alerts2020-01-01
Decision No. 203 of 2020 of the Authority's Board of Directors
The Financial Regulatory Authority of Egypt issued Decision No. 203 of 2020 mandating all licensed financial leasing and factoring companies to pay quarterly supervision and oversight fees calculated at 0.1% of their total revenues within forty-five days of each quarter's end. The decision extends applicable fee provisions to licensed civil society associations engaged in medium and small enterprise financing, while stipulating that delayed payments shall accrue daily interest based on the Central Bank's announced lending and discount rates. This regulation is effective upon publication in the Official Gazette and on the Authority's official website.
20 The Egyptian Gazette - Issue 35 on February 13, 2021
The Financial Regulatory Authority
Decision No. 203 of 2020 of the Authority's Board of Directors Dated 27/12/2020 Regarding the Prescribed Supervision and Oversight Cost Fees
The Board of Directors of the Financial Regulatory Authority Having reviewed Law No. 10 of 2009 concerning the regulation of supervision over non-banking financial markets and instruments; and Law No. 141 of 2014 concerning the regulation of the activity of financing medium, small, and micro-enterprises; and the Law regulating the activities of financial leasing and factoring, issued by Law No. 176 of 2018; and Decision No. 171 of 2014 of the Authority's Board of Directors regarding service fees for entities operating in the microfinance activity; and the approval of the Authority's Board of Directors at its meeting held on 27/12/2020;
DECIDED:
( Article One ) The provisions of Item (2) stipulated in Paragraph One of Article Two of Decision No. 171 of 2014 of the Authority's Board of Directors and its amendments shall apply to associations and civil society institutions licensed to conduct the activity of financing medium and small enterprises.
( Article Two ) Every company licensed to conduct the activity of financial leasing and/or factoring is obligated to calculate and pay supervision and oversight costs at a rate of one per thousand of its total revenues every three months, within forty-five days from the end of the three-month period, based on
21 The Egyptian Gazette - Issue 35 on February 13, 2021
the financial statements prepared by the company and accompanied by an auditor's report thereon, and within a period not exceeding three months from the end of the fiscal year for annual financial statements, provided that companies in case of delayed payment are obligated to pay interest on the overdue amount, calculated daily based on the lending and discount rate announced by the Central Bank.
( Article Three ) This Decision shall be published in The Egyptian Gazette and on the Authority's website.
Chairman of the Authority's Board of Directors Dr. Mohamed Omran