Decision of the Board of Directors No. (53) of 2023

Decision of the Board of Directors of the Financial Regulatory Authority No. (66) of 2019 Regarding the Development Fee Levied on Companies Subject to the Authority's Supervision 1 As per the latest amendment dated 2023/3/8

Chairman of the Board of Directors of the Financial Regulatory Authority Having reviewed:

• The Insurance Supervision and Control Law No. 10 of 1981,
• The Capital Market Law No. 95 of 1992,
• The Financial Leasing Law No. 95 of 1995,
• The Central Depository and Registration of Securities Law No. 93 of 2000,
• The Real Estate Financing Law No. 148 of 2001,
• Law No. 10 of 2009 on Regulating Supervision over Non-Banking Financial Markets and Instruments,
• And the approval of the Authority's Board of Directors in its session No. (9) held on 2009/11/23,

Has Decided:

(Article One)
Companies subject to the Authority's supervision are obligated to pay the development fee stipulated in Article (14) of the Law on Regulating Supervision over Non-Banking Financial Markets and Instruments, in accordance with the deadlines, conditions, procedures, rules, and regulations set forth in this Decision and its attached table.

(Article Two)
"The revenue on which the development fee is paid – for the application of this Decision's provisions – shall be considered as: total direct premiums for insurance companies, total recorded returns for financial leasing companies, and total recorded commissions for securities brokerage companies."

1 This Decision (No. 66 of 2019) was amended by the Authority's Board Decision No. 30 of 2010 dated 2010/3/15, Board Decision No. 82 of 2013 dated 2013/12/23, Board Decision No. 92 of 2014 dated 2014/6/9, Board Decision No. 59 of 2019 dated 2019/4/30, Board Decision No. 90 of 2019 dated 2019/7/16, Board Decision No. 102 dated 2016/8/14, Board Decision No. 125 dated 2016/10/16, Board Decision No. 119 dated 2017/9/13, and Board Decision No. 53 dated 2023/3/8. 2 Article Two was replaced by the Authority's Board Decision No. 30 of 2010 dated 2010/3/15.

(Article Three)
"Companies are obligated to pay and settle the development fee on their revenues every three months, commencing from 2010/10/1, within a maximum period of forty-five days from the end of each payment period, based on the annual financial statements prepared by the company. The development fee amounts shall be settled annually before 2010/10/1, accompanied by the auditor's report, and within a period not exceeding three months from the end of the company's financial year. In case of late payment, companies are obligated to pay a late fee on the outstanding amount, calculated daily based on the EIBOR and Central Bank announced rate." In case of late payment, companies are obligated to pay a daily-calculated late fee on the outstanding amount based on the announced EIBOR and Central Bank rate.

3 Article Three was replaced by the Authority's Board Decision No. 30 of 2010 dated 2010/3/15.

(Article Four)
If a company operates more than one activity subject to the Authority's supervision, the development fee is levied on the highest applicable fee category, provided that the company's financial statements separate the revenues of each activity from others. If there is no separation between the revenues of each activity mentioned in the preceding paragraph, the development fee is levied on total revenues at the higher category.

4 Article Four was amended by the Authority's Board Decision No. 82 of 2013 dated 2013/12/23.

(Article Five)
The development fee for holding companies is calculated based on independent financial statements.

5 Article Five was interpreted by the Authority's Board Decision No. 90 of 2019 dated 2019/7/16, and subsequently replaced by the Authority's Board Decision No. 53 of 2023 dated 2023/3/8.

(Article Six)
The development fee is deposited in the Central Bank, and an administrative unit within the Authority is established to be responsible for calculating the fee value based on each company's revenues, following up its settlement, calculating late fees, and monitoring development expenditures allocated in this Decision, subject to the prior approval of the Authority's Chairman.

(Article Seven)
The development fee is levied for developing the companies' operational fields, including risk assessment and management methods, financial regulations, direct implementation of systems, Authority facilities development, staff capacity building in markets and companies, and specifically:

• Developing the electronic disclosure system for data and information required by supervised companies.
• Applying the electronic disclosure system to company financial statements.
• Implementing development programs in cooperation with the Ministry of International Cooperation, the State Authority for Administrative Development, and the Information Center and Decision Support.
• Developing equipment, software, connectivity means, and communication links for supervised companies, in addition to developing their databases at the Authority.
• Conducting studies and preparing training programs, administrative systems, and establishing a Capital Market Institute.
• Training Authority and market staff to support internal audit systems and enhance supervisory efficiency.
• Establishing a Market Services Unit at the Authority.
• Developing the actuarial department.
• Developing investor awareness and education programs, promoting financial and investment culture.
• Including global systems and preparing qualified personnel to work in them.
• Establishing an affiliated Arbitration Center at the Authority, and:
• Developing the Authority's electronic website and expanding e-services for participants and companies.
  (Added by Board Decision No. 102 dated 2016/8/14, specifically regarding the development of the movable collateral system and its required electronic registry.)
• Contributing to preparing and equipping Authority facilities to:
  1. Provide adequate space for developing IT systems in the aforementioned fields to enhance staff efficiency.
  2. Provide and equip adequate space for applying work system implementation programs at the Authority.
  3. Provide and equip adequate space to develop staff skills at the Authority and participants in the supervised business fields.

6 Article Seven text was replaced by the Authority's Board Decision No. 92 of 2014 dated 2014/6/9.

(Article Eight)
This Decision is published in Al-Waqaya Al-Masriya and on the Authority's electronic website, and takes effect from 2010/1/1.

Attachment: Table of the Authority's Board Decision No. 66 dated 2009/12/7 Development Fee Rate as a Percentage of Total Revenues for Activities Subject to the Authority's Supervision

1. Financial Leasing: 2 per thousand
2. Factoring: 2 per thousand
3. Insurance and Reinsurance: 2 per thousand for Property & Liability activities, and 1 per thousand for Life activities
4. Insurance Consulting: 2 per ten thousand
5. Insurance Brokerage: 2 per thousand
6. Insurance Survey/Adjustment: 2 per ten thousand
7. Real Estate Financing and Refinancing: 2 per thousand
8. Securities Brokerage: 2 per thousand
9. Portfolio Management and Investment Funds: 2 per thousand
10. Investment Funds: 2 per ten thousand
11. Trading, Brokerage, and Dealing in Bonds: 1 per thousand
12. Underwriting and Subscription Promotion in Securities: 2 per thousand
13. Participation in Establishing Companies Issuing Securities or Increasing Capital: 2 per ten thousand
14. Venture Capital: 1 per thousand
15. Clearing, Settlement, and Central Depository: 2 per thousand
16. Valuation, Classification, and Rating of Securities: 2 per ten thousand
17. Analysis and Evaluation of Securities: 2 per ten thousand
18. Information Dissemination: 2 per thousand
19. Securitization of Financial Rights: 1 per ten thousand
20. Financial Consulting: 2 per ten thousand
21. Market Maker: 2 per thousand
22. Management Services in Investment Funds: 2 per thousand
23. Companies Listed on Securities Exchanges: 2 per thousand
24. Custodian Companies: 1 per ten thousand (Added by Decision 125/2016, effective 2017/1/1)
25. Microfinance Companies: 2 per ten thousand (Added by Decision 119/2017)
26. Charitable Investment Funds: 2 per ten thousand of total annual revenues, capped at 1,000 EGP. (Added by Decision 59/2019)
27. SME Project Financing: 2 per ten thousand (Added by Decision 202/2020, fee applies whether operated individually or combined with microfinance).
28. Consumer Financing: 2 per thousand (Added by Decision 202/2020).