Board Resolution No. (167) of 2021 Amending Board Resolution No. (58) of 2018 on Licensing Rules for Banks and Non-Banking Financial Companies

FINANCIAL REGULATORY AUTHORITY

Chairman of the Authority
Board Resolution No. (167) of 2021 dated 31/10/2021 Amending Board Resolution No. (58) of 2018 Regarding the Rules, Regulations and Licensing Procedures for Banks and Certain Companies Engaging in Non-Banking Financial Activities or Co-Operating with 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 its executive regulations; 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, regulations and licensing procedures for banks and certain companies engaging in non-banking financial activities or co-operating with investment funds; and after approval by the Board of Directors in its meeting held on 31/10/2021;

Resolved:
(Article One)
Two new paragraphs are added following the second paragraph of Item (8) in Article Seven of the aforementioned Board Resolution No. (58) of 2018, with the following text:

(Article Seven - Item "8" - Paragraph Three):
The contract concluded with the investment manager must include consideration of his dismissal if at least one of the following circumstances occurs:

1. Taking any measure or concluding any transaction that entails a substantial conflict between the fund's interest and his interest, or the interest of another fund he manages, unless previously approved by the policyholders' group.
2. Committing any of the acts prohibited for him as stipulated in the executive regulations of the Capital Market Law, or committing any acts resulting in disrupting market stability or harming the rights of policyholders.
3. Failure to disclose material events and information regarding the fund related to his obligations and competencies to policyholders and other relevant parties.
4. Failure to execute his agreed obligations and responsibilities, taking into account the circumstances of funds similar to the fund in question.

Smart Village, Building 136, Giza, Egypt
Postal Code: 110
Tel: +202-35370035 Fax: +202-35370036
WWW.FRA.GOV.EG
46076

(Article Seven - Item "8" - Paragraph Four):
The Supervisory Committee is committed to presenting its decision on the dismissal of the investment manager to the policyholders' group for ratification.

(Article Two)
This Resolution shall be published in the Egyptian Gazette and on the websites of the Authority and the Egyptian Exchange, and shall take effect from the day following its publication in the Egyptian Gazette.

Chairman of the Board of Directors
Dr. Mohamed Omran

Smart Village, Building 136, Giza, Egypt
Postal Code: 110
Tel: +202-35370035 Fax: +202-35370036
WWW.FRA.GOV.EG
46076