Regulatory Alerts2021-01-01
Board of Directors Decision No. (25) of 2021
The Financial Regulatory Authority (FRA) of Egypt issued Board Decision No. (25) of 2021 to amend the executive regulations governing factoring activities. The decision replaces the debtor eligibility criteria in Article Three to explicitly permit public legal entities, Egyptian Exchange margin trading investors, and end consumers as debtors, subject to specific regulatory conditions. It additionally introduces Article Four (bis) mandating that factoring companies engaged in margin trading receivables must contract only with FRA-approved brokers, utilize exchange-approved securities, and implement a comprehensive operational system with standardized contracts.
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