Regulatory Alerts2021-01-01
Board of Directors Decision No. (166) of 2021 dated 2021/10/31 amending Board of Directors Decision No. (53) of 2018 regarding controls for granting and continuing licenses and rules for owning shares of non-banking financial companies
The Financial Regulatory Authority's Board of Directors issued Decision No. (166) of 2021, amending Decision No. (53) of 2018 concerning licensing controls and share ownership rules for non-banking financial companies. This amendment introduces new stipulations for venture capital companies, requiring legal entities to hold at least 50% of the company's capital, with financial institutions and/or qualified investors accounting for no less than 25%. Qualified investors are defined to include public legal entities, joint-stock companies with a minimum paid-up capital of EGP 5 million, natural persons with at least five years of relevant experience, or individuals holding liquid assets or financial instruments worth at least EGP 10 million (excluding those in the licensed company).
FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority Board of Directors Decision No. (166) of 2021 dated 2021/10/31 amending Board of Directors Decision No. (53) of 2018 regarding the controls for granting and continuing licenses and the rules for owning shares of companies operating in non-banking financial activities
Board of Directors of the Financial Regulatory Authority Having reviewed Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; And Board of Directors Decision No. (53) of 2018 regarding the controls for granting and continuing licenses and the rules for owning shares of companies operating in non-banking financial activities; And after the approval of the Authority's Board of Directors at its meeting held on 2021/10/31;
Decided
(Article One) A second paragraph shall be added to item (2) of the first paragraph of Article Four of the aforementioned Board of Directors Decision No. (53) of 2018, with the following text:
(Article Four - First Paragraph - Item "2" - Second Paragraph): For venture capital companies, it is stipulated that the percentage of legal entities shall not be less than (50%) of the company's capital, and the percentage of financial institutions and/or qualified investors shall not be less than (25%) of its capital. Qualified investors mean any of the following: 1- Public legal entities. 2- Joint-stock companies whose paid-up capital is not less than five million Egyptian pounds or its equivalent in foreign currencies. 3- Natural persons with at least five years of experience in credit operations and/or fund management and investment. 4- Natural persons owning liquid assets and/or securities or financial instruments worth not less than ten million pounds, provided that the aforementioned securities or financial instruments are not in the company being licensed.
(Article Two) This Decision shall be published in the Official Gazette (Al-Waqai' al-Misriyya) and on the websites of both the Authority and the Egyptian Exchange, and shall come into force on the day following its publication in the Official Gazette.
Chairman of the Authority's Board of Directors Dr. Mohamed Omran
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