Regulatory Alerts2020-01-01
Decision of the Board of Directors of the Financial Regulatory Authority No. (99) of 2020 Amending Decision No. (176) of 2018 on Rating Agency Establishment and Licensing Requirements
The Financial Regulatory Authority (FRA) of Egypt issued Decision No. (99) of 2020 to amend Decision No. (176) of 2018 regarding the establishment and licensing requirements for rating agencies. The amendment mandates that when a rating agency lacks independence from the beneficiary entity, a qualified paying agent or independent third party must oversee sukuk return distributions, monitor issuer obligations, and convene holder meetings upon request. Furthermore, both the rating agency and the appointed independent party are required to issue periodic asset quality reports, renew credit ratings through FRA-registered agencies, and immediately disclose material events or conflicts of interest, particularly for private sukuk issuances.
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