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2019-01-01

Financial Regulatory Authority Board of Directors Decision No. (4) of 2019

The Financial Regulatory Authority (FRA) issued Decision No. (4) of 2019 to define the eligibility criteria and selection procedures for members of the Board of the Policyholders and Beneficiaries Guarantee Fund at Insurance Companies. The decree requires the appointment of two client representatives—one specializing in life insurance and the other in property and liability insurance—alongside three independent experts, all of whom must satisfy stringent educational, reputational, and professional experience thresholds while meeting strict conflict-of-interest and citizenship requirements. Finally, the regulation mandates publication in the Egyptian Gazette and official websites, with immediate effect from the day following its issuance.

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Financial Regulatory Authority Egypt

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Financial Regulatory Authority

FINANCIAL REGULATORY AUTHORITY

Chairman of the Authority

Decision of the Board of Directors of the Financial Regulatory Authority

No. (4) for the Year 2019 dated 20/1/2019

Regarding the Conditions and Regulations for Selecting Members of the Board of the Policyholders and Beneficiaries Guarantee Fund at Insurance Companies from Clients of Those Companies and Also from Experts

Board of Directors of the Financial Regulatory Authority

Having reviewed the Law on Joint Stock Companies, Companies Limited by Shares and Limited Liability Companies issued by Law No. (159) of 1981 and its executive regulations,

and the Law on Supervision and Control of Insurance in Egypt issued by Law No. 10 of 1981,

and the Law on Regulating Supervision over Non-Banking Financial Markets and Instruments issued by Law No. 10 of 2009,

and the Prime Minister's Decision No. 2734 of 2018 issuing the Basic Statute of the Policyholders and Beneficiaries Guarantee Fund at Insurance Companies,

and the approval of the Authority's Board of Directors in its session held on 20/1/2019.

Has Decided

Article One

The Authority shall issue a decision selecting two members for the Board of Directors of the Policyholders and Beneficiaries Guarantee Fund at Insurance Companies from clients of those companies, with one being a client of a company operating in life insurance activities and the other a client of a company operating in property and related liability insurance activities, registered with the Authority, meeting the following conditions and regulations:

  1. Holding a higher degree from one of the Egyptian faculties or one of the foreign universities, with the degree recognized by the Supreme Council of Universities.

  2. Being of good reputation and conduct.

  3. Not having been subject to a final judgment for a felony or a crime involving honor or trust, or for the crimes stipulated in the aforementioned Law on Joint Stock Companies, Companies Limited by Shares and Limited Liability Companies, or the laws regulating non-banking financial activities, or having been declared bankrupt unless his reputation has been restored.

  4. That the insurance policies concluded with them at any of the insurance companies registered in the dedicated register maintained by the Authority are active and continuous at the time of selection and throughout their tenure on the Fund's Board of Directors.

Article Two

Subject to the provision of Article (14) of the aforementioned Prime Minister's Decision No. 2734 of 2018, the Authority's Board of Directors shall select three expert members for the Board of Directors of the Policyholders and Beneficiaries Guarantee Fund at Insurance Companies, meeting the following conditions and regulations:

  1. Possessing the conditions stipulated in items numbers (1, 2, 3, 6, 7) of the previous article.

  2. Being Egyptian of Egyptian parents.

  3. Having at least fifteen years of experience in the field of insurance or reinsurance or related sciences, or in one of the legal fields, and for the electronic expert, having at least ten years of registration in the dedicated register maintained by the Authority.

  4. Not being an employee, shareholder, or board member of the Authority, any of the companies that are members of the Fund, or any of the companies that hold shares in it or are affiliated with it.

Article Three

This decision shall be published in the Egyptian Gazette and on the electronic website of both the Authority and the Fund (in case a website is established for it), and shall take effect from the day following its issuance date, and the competent authorities are tasked with its implementation.

Chairman of the Board of Directors of the Authority

Dr. Mohamed Omran

Office of the Chairman of the Authority

Smart Village, Building No. B-136, Giza, Egypt
Postal Code: 12577
Tel.: +202 35345350 - Fax: +202 35370036
info@fra.gov.eg

Smart Village, Building no. B-136, Giza
Postal Code: 12577
Tel.: (00202) 35345350 - Fax.: (00202) 35370036
www.FRA.gov.eg

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