Regulatory Alerts2020-01-01
Decision of the Board of Directors of the Authority No. 205 of 2020 on Reducing Development Fees and Service Charges for Licensed Non-Banking Financial Entities Serving Women
The General Authority for Financial Supervision issued Decision No. 205 of 2020 to reduce development fees and service charges for licensed non-banking financial entities. The reduction applies to companies and organizations directing at least 25% of their dealings and services toward women, calculated as a 50% discount on the applicable fee multiplied by the percentage of female-oriented transactions. This measure takes effect the day after publication in the Egyptian Gazette and the Authority's website, with specific fee exemptions detailed in the attached annex for various financial sectors.
The General Authority for Financial Supervision
- Chairman of the Authority -
Decision of the Board of Directors of the Authority No. (205) of 2020 dated 27/12/2020
Regarding the reduction of the development fee and service charge due from licensed companies and entities operating in non-banking financial activities in their dealings and services provided to women
The Board of Directors of the General Authority for Financial Supervision Having reviewed the Constitution; and Law No. (54) of 1975 on Private Insurance Funds; and Law No. (10) of 1981 on Supervision and Control of Insurance in Egypt; and Law No. (95) of 1992 on the Capital Market; and Law No. (93) of 2000 on Central Deposit and Registration of Securities and Financial Instruments; and Law No. (148) of 2001 on Real Estate Financing; and Law No. (10) of 2009 on Regulating Supervision over Non-Banking Financial Markets and Instruments; and Law No. (41) of 2014 on Regulating the Activity of Financing Medium, Small, and Micro Enterprises; and Law No. (176) of 2018 on Regulating the Activity of Financial Leasing and Discounting; and Law No. (18) of 2020 on Regulating the Activity of Consumer Financing; and Decision of the Board of Directors of the Authority No. (187) of 2020 regarding the establishment of a database with companies and entities operating in non-banking financial activities on the services they provide to their clients; and after approval by the Authority's Board of Directors in its meeting held on 27/12/2020;
Decided
(Article One)
The development fee and service charge collected by the Authority from licensed companies and entities operating in non-banking financial activities shall be reduced to the limits specified in Annex No. (1) attached to this Decision, if at least 25% of the dealings of these companies or entities and the services they provide are directed toward women, as specified in the aforementioned Decision of the Board of Directors of the Authority No. (187) of 2020, with such reduction calculated according to the following formula:
First: Development Fee
Reduction Amount = Due Development Fee × 50% × Percentage of the Company or Entity's Dealings with Women.
Second: Service Charge
Reduction Amount = Due Service Charge × 50% × Percentage of the Company or Entity's Dealings with Women.
(Article Two)
This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect as of the day following its publication in the Egyptian Gazette.
Chairman of the Board of Directors The General Authority for Financial Supervision
Dr. Mohamed Omran
Annex No. (1)
| Companies and Entities Operating in Non-Banking Financial Activities | Development Fee | Service Charge |
|---|---|---|
| Branch Services Charge | ||
| 1. Securities Brokerage Companies | √ | — |
| 2. Securities Portfolio Formation and Management Companies | √ | — |
| 3. Investment Funds | √ | — |
| 4. Charitable Investment Funds | √ | — |
| 5. Venture Capital Companies | √ | — |
| 6. Clearing, Settlement, and Central Deposit Companies | √ | — |
| 7. Custodians | √ | — |
| 8. Insurance and Reinsurance Companies | √ | — |
| 9. Real Estate Financing and Refinancing Companies | √ | — |
| 10. Financial Leasing Companies | √ | — |
| 11. Factoring Companies | √ | — |
| 12. Consumer Financing Companies and Providers | √ | — |
| 13. Companies Engaged in Financing Medium, Small, and Micro Enterprises | √ | — |
| 14. Associations and Civil Institutions Engaged in Financing Medium, Small, and Micro Enterprises | — | √ |
The General Authority for Financial Supervision Chairman's Office
Smart Code: Building 136, Al-Magzar, Egypt Postal Code: 110 Telephone: +202 3545650, Fax: +202 3547006 WWW.FRA.GOV.EG
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