Regulatory Alerts2021-01-01
Financial Regulatory Authority Board Resolution No. (130) of 2021
The Financial Regulatory Authority issued Board Resolution No. (130) of 2021 to amend Resolution No. (58) of 2018 regarding banking licensing rules and the authorization for certain non-banking financial companies to manage investment funds. The resolution mandates that charitable investment funds set aside 2% of their size (capped at 5 million Egyptian pounds) and exempts them from the maximum limit on issuing investment documents, while replacing "quarterly financial statements" with "semi-annual financial statements" across the referenced resolution. Furthermore, management services companies are required to prepare annual or semi-annual fund financial statements starting from the 2022 fiscal year, with the resolution taking effect the day after its publication in the Egyptian Gazette.
Financial Regulatory Authority
Chairman of the Authority
Board Resolution No. (130) of 2021 dated 2021/8/18 Amending Board Resolution No. (58) of 2018 regarding the rules and conditions for licensing procedures for banks and for certain companies conducting non-banking financial activities to conduct themselves or with others the activity of investment funds
The Board of Directors of the Financial Regulatory Authority Having reviewed the Capital Market Law issued by Law No. (95) of 1992; and Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; and Board Resolution No. (58) of 2018 regarding the rules and conditions for licensing procedures for banks and certain companies conducting non-banking financial activities to conduct themselves or with others the activity of investment funds, amended by Resolution No. (87) of 2021; and after approval by the Board of Directors in its meeting held on 2021/8/18;
Resolved:
(Article One) The following phrase is added to the lower part of Item (5) of Article Two of the aforementioned Board Resolution No. (58) of 2018: «With respect to charitable investment funds, they are obliged to set aside an amount equivalent to (2%) of the fund's size, up to a maximum of 5 million Egyptian pounds, and are not bound in issuing investment documents by the maximum limit stipulated in this item.»
(Article Two) The phrase «Quarterly Financial Statements» is replaced by the phrase «Semi-annual Financial Statements» wherever it appears in the aforementioned Board Resolution No. (58) of 2018. Management services companies are obliged to prepare the annual or semi-annual financial statements for the fund as of the fiscal year 2022.
(Article Three) This Resolution is published in the Egyptian Gazette and on the websites of the Authority and the Egyptian Exchange, and takes effect from the day following its publication in the Egyptian Gazette, and any provision contradicting it is repealed.
Chairman of the Board of Directors of the Authority Dr. Mohamed Omran
[Seal of the Financial Regulatory Authority] 46076
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