Regulatory Alerts2020-01-01
Decision No. (205) of 2020 on Reducing Development Fees and Service Charges for Licensed Non-Banking Financial Entities Serving Women
The Financial Regulatory Authority's Board of Directors issued Decision No. (205) of 2020 to reduce development fees and service charges for licensed non-banking financial entities. The reduction applies when 25% or more of an entity's transactions and services are directed toward women, calculated by multiplying the payable fee by 50% and the exact percentage of female-facing transactions. The decision specifies applicable fee reductions for various financial sectors in its annex and takes effect the day after publication in the Egyptian Gazette.
The General Authority for Financial Supervision
- Chairman of the Authority -
Decision No. (205) of 2020 dated 27/12/2020
Regarding the reduction of the development fee and service charges payable by companies and entities licensed to conduct non-banking financial activities in their transactions 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 No. (187) of 2020 of the Authority's Board of Directors 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 charges that the Authority charges from companies and entities licensed to conduct non-banking financial activities shall be reduced to the limits specified in Annex No. (1) attached to this Decision, if 25% or more of the transactions of these companies or entities and the provision of their services are directed toward women, as specified in Decision No. (187) of 2020 of the Authority's Board of Directors, referenced above, with such reduction to be calculated according to the following formula:
First: Development Fee
Reduction Amount = Payable Development Fee × 50% × Percentage of the Company or Entity's Transactions with Women.
Second: Service Charges
Reduction Amount = Payable Service Charges × 50% × Percentage of the Company or Entity's Transactions with Women.
(Article Two)
This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from 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 Charges |
|---|---|---|
| Branch Services Fee | ||
| 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 Society Organizations Engaged in Financing Medium, Small, and Micro-Enterprises | — | √ |
The General Authority for Financial Supervision Office of the Chairman of the Authority
Smart Village, Building 136, Al-Magzar, Egypt Postal Code: 110 Telephone: +202 3545650, Fax: +202 3547006 WWW.FRA.GOV.EG**
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