Decision of the Board of Directors of the Authority No. 109 of 2020

The Official Gazette – Issue 171 on July 29, 2020

The Financial Regulatory Authority
Decision of the Board of Directors of the Authority No. 109 of 2020
Dated 23/6/2020

Amending Decision of the Board of Directors of the Authority No. 171 of 2014 regarding the conditions for registration, continuation of registration, and removal from the register of auditors of microfinance companies, associations, and non-profit institutions licensed to conduct this activity with the Authority, and Decision of the Board of Directors of the Authority No. 84 of 2019 reorganizing the conditions for registration, continuation of registration, and removal from the register of auditors with the Authority

The Board of Directors of the Financial Regulatory Authority
Having reviewed the Capital Market Law issued by Law No. 90 of 1992 and its Executive Regulations;
And Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments;
And Law No. 141 of 2014 regulating the microfinance activity;
And Decision of the Board of Directors of the Authority No. 171 of 2014 regarding the conditions for registration, continuation of registration, and removal from the register of auditors of microfinance companies, associations, and non-profit institutions licensed to conduct this activity with the Authority;
And Decision of the Board of Directors of the Authority No. 84 of 2019 reorganizing the conditions for registration, continuation of registration, and removal from the register of auditors with the Authority;
And Decision of the Board of Directors of the Authority No. 100 of 2020 regarding corporate governance rules for companies operating in non-banking financial activities;
And following the approval of the Authority's Board of Directors in its meeting held on 23/6/2020;

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Decision:

(Article One)
A third paragraph shall be added to Article One of Decision of the Board of Directors of the Authority No. 84 of 2019 reorganizing the conditions for registration, continuation of registration, and removal from the register of auditors with the Authority, with the following text:

(Article One - Paragraph Three):
The auditor shall be appointed annually and may be renewed for a maximum of six consecutive years, after which they shall be replaced by another independent auditor who does not have a professional relationship with the replaced auditor, and shall not be reappointed until three financial years have passed from the expiration of the aforementioned six-year period.

(Article Two)
A second paragraph shall be added to Article One of Decision of the Board of Directors of the Authority No. 171 of 2014 regarding the conditions for registration, continuation of registration, and removal from the register of auditors of microfinance companies, associations, and non-profit institutions licensed to conduct this activity with the Authority, with the following text:

(Article One - Paragraph Two):
The auditor shall be appointed annually and may be renewed for a maximum of six consecutive years, after which they shall be replaced by another independent auditor who does not have a professional relationship with the replaced auditor, and shall not be reappointed until three financial years have passed from the expiration of the aforementioned six-year period.

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(Article Three)
The six-year period referred to in Articles One and Two of this Decision shall be calculated from the date of appointment of the auditor.

(Article Four)
This Decision shall be published in the Official Gazette and on the Authority's website, and shall take effect from the day following its publication in the Official Gazette.

Chairman of the Board of Directors
Dr. Mohamed Omran