Decision of the Board of Directors of the Authority No. 179 of 2020 Regarding Registration, Transfer, and Closure of Consumer Financing Companies' Branches

General Authority for Financial Supervision Decision of the Board of Directors of the Authority No. 179 of 2020 Dated 2020/11/18 Regarding the Regulations for the Registration, Transfer, and Closure of Branches of Companies Licensed to Conduct Consumer Financing Activities

The Board of Directors of the General Authority for Financial Supervision Having reviewed Law No. 10 of 2009 on regulating supervision over non-banking financial markets and instruments; And the Law on Regulating Consumer Financing Activities issued by Law No. 18 of 2020; And after the approval of the Authority's Board of Directors in its meeting held on 2020/11/18;

Decided:

( Article One )
Branch Registration Register
A special register shall be established with the Authority for the registration of branches of companies licensed to conduct consumer financing activities, and each branch shall be assigned a serial number linked to the company's license number. These companies shall not conduct consumer financing activities through offices or other locations other than the company's headquarters, except after obtaining the Authority's prior approval for branch registration in the aforementioned register.

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( Article Two )
Branch Registration with the Authority
The following conditions must be met to obtain the Authority's approval for the registration of branches of companies licensed to conduct consumer financing activities in the register referred to in Article One of this Decision:

1. The branch's premises must be independent of the company's headquarters.
2. The branch must be equipped with the necessary facilities and technical and technological infrastructure to conduct the activity.
3. The candidate for the position of branch manager must hold an appropriate higher education qualification and possess at least five years of experience in the company's field of work.
   The branch registration application shall be submitted on the form prepared by the Authority for this purpose, signed by the company's legal representative, stamped with its official seal, and accompanied by the following documents:
4. A copy of the company's board of directors meeting minutes approving the opening of the branch, specifying its location and the name of the candidate for branch manager.
5. A recent official extract from the company's commercial register confirming the issued and paid-up capital.
6. A copy of the company's proof of occupancy for the branch premises, certified by the company's legal representative.
7. A declaration confirming the availability of the necessary technological, technical, and information systems for the efficient and effective operation of the new branch's activity, along with evidence of obtaining connectivity lines between the company's headquarters and the new branch.
8. A copy of the candidate's academic qualification certificate and a statement of practical experience for the branch manager position.

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6. A declaration from the candidate for branch manager confirming dedication to the company's work duties.
7. Evidence that no final judgments imposing felony or misdemeanor penalties for crimes involving honor or trust have been issued against the candidate for branch manager within the five years preceding the application date, unless their reputation has been restored.
8. Evidence that no judgments declaring bankruptcy or insolvency have been issued against the candidate for branch manager within the three years preceding the application date.
9. Receipt of payment for the prescribed examination and study service fees.
   The company shall be obligated to notify the Authority of any change in the branch manager within a period not exceeding two weeks from the change, attaching evidence that the new branch manager meets the required conditions and documents, and obtains confirmation of no objection from the Authority.

( Article Three )
Transfer of Headquarters or Branches
Companies licensed to conduct consumer financing activities wishing to transfer their headquarters or any of their branches shall submit an application to the Authority on the form prepared for this purpose, accompanied by the following data and documents:

1. A copy of the company's board of directors meeting minutes approving the transfer of the headquarters or a branch and specifying its location.
2. Reasons for the transfer.
3. The target date for the transfer.
4. Arrangements regarding the transfer of customer accounts.

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5. A declaration confirming the completion of the information and technical infrastructure of the new headquarters or branch, as applicable, and its readiness for efficient and effective operation according to the workload within the period determined by the Authority.
6. Receipt of payment for the prescribed examination and study service fees.

( Article Four )
Closure of Branches
Companies licensed to conduct consumer financing activities wishing to close any of their branches shall submit an application to the Authority on the form prepared for this purpose, accompanied by the following data and documents:

1. A copy of the company's board of directors meeting minutes approving the closure of the branch.
2. The target date for closure.
3. Arrangements regarding customer accounts.
4. Receipt of payment for the prescribed examination and study service fees.

( Article Five )
Adjudication of Applications
The Chairman of the Authority shall issue a decision approving or rejecting the registration of branches for a company, their closure, or the transfer of its headquarters or any of its branches, within ten days from the date of submission of a complete application containing the required data and documents, in accordance with market needs and geographical distribution, and after verifying the following:

1. No measures stipulated in the aforementioned Law on Regulating Consumer Financing Activities have been taken against the company, unless the company has remedied the grounds for such measure and three months have elapsed since then.

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2. Compliance with submitting supervisory reports to the Authority and annual and periodic financial statements within their deadlines, and addressing inspection and audit findings (if any).
   In all cases, a company that obtains the Authority's approval under the provisions of this Article shall notify the Authority of the commencement of the new branch's activity, the transfer to the new headquarters or branch, or the closure of the branch, as applicable. If the company fails to commence the new branch's activity or complete the transfer to the new branch within six months from the date of the Authority's approval, or fails to close the branch within three months from the date of the Authority's approval, the approval issued by the Authority in this regard shall be considered null and void.

( Article Six )
Branch Registration Certificate
The competent department within the Authority shall issue a certificate of the company's branch registration in the register prepared for this purpose within five days from the date of the approval decision for registration. The certificate shall include all data related to the branch, specifically: (branch registration number - company license number - branch number within the company - branch name - branch manager name - branch address - registration date).

( Article Seven )
Administrative Organization of the Branch Network Companies licensed to conduct consumer financing activities shall establish an organizational structure for their branch network, taking into account the geographical distribution of these branches approved for registration with the Authority. The company's credit policy shall specify a credit decision-making authority matrix according to one of the following determinants:

1. Centralized credit granting authority by the credit committee at the headquarters and the company's regional credit committees (if any).

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2. Decentralized credit granting authority by credit committees within the branches.
3. Discretionary credit granting authority distributed among committees at the headquarters, regions, and branches according to different financing tiers, provided financing products, and the company's accepted risk levels.

( Article Eight )
Examination and Study Service Fees
The Authority shall charge a fee for examination and study services regarding applications for the registration, closure, or transfer of headquarters or branches of companies licensed to conduct consumer financing activities, as follows:

Service	Examination and Study Fee
Branch Registration	5,000 Egyptian Pounds
Transfer of Headquarters - Branch	2,500 Egyptian Pounds
Branch Closure	1,000 Egyptian Pounds

( Article Nine )
Companies subject to the provisions of this Decision and in existence on the date of its implementation shall be obligated to regularize their status in accordance with its provisions within six months from the date of its implementation.

( Article Ten )
This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the day following its publication in the Egyptian Gazette.

Chairman of the Board of Directors
Dr. Mohamed Omran