Regulatory Alerts2020-01-01
Chairman of the Authority Decision No. (457) of 2020
The Financial Regulatory Authority (FRA) of Egypt issued Decision No. (457) of 2020 mandating that all licensed consumer financing companies and providers execute standardized contracts with their clients. These contracts must explicitly detail the financed goods or services, pricing, repayment schedules, applicable yield rates, collateral requirements, data disclosure authorizations, prepayment rights, debt sale provisions, and the company's regulatory license number. Additionally, firms operating via commercial payment cards must list authorized merchants and update them dynamically, while specifying maximum financing limits and yield terms independent of other legislative caps, with all contract templates requiring prior FRA approval before implementation.