Regulatory Alerts2020-01-01
Board of Directors Decision No. 53 of 2020
The Financial Regulatory Authority of Egypt issued Board of Directors Decision No. 53 of 2020 to formally classify Takaful (Islamic insurance) as a distinct activity from traditional commercial insurance under Article 40 of Law No. 10 of 1981. This regulatory clarification explicitly permits joint-stock commercial insurance companies to invest in the capital of Takaful insurance companies, thereby overriding the previous prohibition on cross-investment within the sector. The decision establishes the legal framework for capital participation between conventional and Islamic insurance entities while preserving the Authority's supervisory oversight.
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