Regulatory Alerts2010-01-01
Circular Letter No. (5) for the Year 2010
The Egyptian Financial Supervisory Authority (EFSA) mandates that all regulated entities, including listed companies, securities firms, insurance entities, and real estate financing companies, must exclusively engage auditors registered with the EFSA's official Register of Auditors. This directive, issued on September 9, 2010, requires companies to secure a formal confirmation letter from the EFSA's Quality Control Unit verifying an auditor's active registration status prior to entering into or renewing any audit service contracts. The requirement stems from multiple capital market, insurance, and financial supervision laws, reinforcing the Authority's prohibition on unregistered auditors and its centralized quality control framework.
General Format
Financial Supervision Egyptian Financial Supervisory Authority (EFSA)
Circular Letter No. (5) Issued on 9/9/2010 Regarding companies subject to the Authority's supervision contracting exclusively with auditors registered in the Authority's Register of Auditors
To:
- Companies operating in the securities sector
- Companies listed on the Egyptian Exchange
- Publicly held companies
- Investment funds established by banks and insurance companies
- Insurance, reinsurance, and cooperative insurance associations
- Real estate financing companies
With reference to Article 11 of Law No. 95 of 1992 concerning the Capital Market, as amended by Law No. 123 of 2008,
and to Article 48 of Law No. 10 of 1981 concerning Supervision and Control of Insurance in Egypt,
and to Article 33 of Law No. 148 of 2001 concerning Real Estate Financing,
and to Article 3 of Law No. 10 of 2009 concerning the Regulation of Supervision over Non-Banking Financial Markets and Instruments,
and to Decision No. 33 of 2009 of the Board of Directors of the General Authority for the Capital Market regarding the conditions for registration, continuation of registration, and removal from the Authority's Register of Auditors,
and to the decisions of the Board of Directors of the General Authority for Financial Supervision Nos. 27, 23, and 24 of 2009 concerning
the Authority's Register of Auditors, the prohibition of auditing companies subject to the Authority's supervision by auditors not registered in the Register, and the establishment of the Quality Control Unit for the work of registered auditors at the Authority.
Please refrain from contracting or renewing contracts with auditors other than those registered in the Register maintained by the Authority. It is also mandatory to obtain a letter from the Quality Control Unit for the work of registered auditors at the Authority addressed to the company, confirming the continued registration of the auditor prior to contracting for the provision of services.
Hesham Ibrahim Supervisor of the Central Administration for Technical Office Affairs
Postal Address: 18 Gari Misr / Alexandria Desert Road
Zone: 6th of October City, Postal Code: 12577
Telephone: 202 2537 0040 - 202 2537 0041
Email: info@efsa.gov.eg
Website: www.efsa.gov.eg