Regulatory Alerts2021-01-01
Board of Directors Decision No. 191 of 2021 Amending Board of Directors Decision No. 50 of 2014 Regarding the Regulation of the Work of the Quality Control Unit for Auditors Registered with the Authority
The Financial Regulatory Authority's Board of Directors issued Decision No. 191 of 2021, amending Decision No. 50 of 2014 to regulate the Quality Control Unit for Auditors registered with the Authority. The amendments replace Article Second, Clause 1, to include proposing rules for auditor registration, suspension, and delisting, and Article Fifth, which now specifies quorum and voting requirements for the Unit's Council recommendations, requiring the Authority's Board approval for effectiveness. A new Clause 1 bis is added to Article Second, empowering the Unit to issue measures against auditors, with all such measures, including prohibition, suspension, or delisting, requiring approval from the Head of the Authority and subsequent adoption by the Authority's Board of Directors.
20 The Egyptian Gazette - Issue 286 on December 20, 2021
Financial Regulatory Authority Board of Directors Decision No. 191 of 2021 Dated 2021/11/30 Amending Board of Directors Decision No. 50 of 2014 Regarding the Regulation of the Work of the Quality Control Unit For Auditors Registered with the Authority
Board of Directors of the Financial Regulatory Authority Having reviewed Law No. 10 of 2009 regarding the regulation of non-banking financial markets and instruments; And Board of Directors Decision No. 50 of 2014 regarding the regulation of the work of the Quality Control Unit for Auditors registered with the Authority; And after the approval of the Authority's Board of Directors at its meeting held on 2021/11/30;
Decided: (Article One) The texts of Articles (Second - Clause 1) and (Fifth) of the aforementioned Board of Directors Decision No. (50) of 2014 shall be replaced with the following two texts: Article Second - Clause '1': 1 - Proposing rules for the registration of auditors who are permitted to audit the accounts of companies and entities licensed to engage in non-banking financial activities, companies that have offered their securities in a public subscription, and companies whose securities or financial instruments are listed on one of the Egyptian stock exchanges, in addition to proposing rules and procedures for suspending and delisting from the register, provided that these rules are approved by the Authority's Board of Directors. Article Fifth: The Council's meeting shall not be valid unless attended by the majority of its members, including three members with voting rights. The Council's recommendations shall be issued by an absolute majority of the attending members with voting rights, and these recommendations shall not be effective until the date of approval by the Authority's Board of Directors.
21 The Egyptian Gazette - Issue 286 on December 20, 2021
The Unit's Board of Directors shall take measures against auditors by an absolute majority of the attending members with voting rights, provided that measures of prohibition from accepting new engagements, suspension, or delisting from the register shall be issued with the approval of two-thirds of the attending members with voting rights. The measures referred to in the preceding paragraph shall not be effective until approved by the Head of the Authority, provided that these measures are presented to the Authority's Board of Directors at its first subsequent meeting for approval.
(Article Two) A new clause numbered (1 bis) shall be added to Article Second of the aforementioned Board of Directors Decision No. (50) of 2014, with the following text: Article Second - Clause '1 bis': 1 bis - Issuing measures against auditors registered with the Authority, provided that these measures shall not be effective until approved by the Head of the Authority, and that these measures are presented to the Authority's Board of Directors at its first subsequent meeting for approval.
(Article Three) This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall come into force from the day following its publication date, and any provision contradicting it shall be repealed.
Head of the Authority's Board of Directors Dr. Mohamed Omran