Regulatory Alerts2021-01-01
Financial Regulatory Authority Board of Directors Resolution No. (95) of 2021
The Financial Regulatory Authority issued Resolution No. (95) of 2021 to amend the licensing requirements for direct investment companies by modifying the experience threshold for responsible managers. The revised clause mandates a minimum of five years in financing, securities markets, or financial institution management, which is reduced to four years for managers who successfully complete Authority-approved training courses. For affiliated general partners, the resolution further requires that their parent company be subject to a comparable supervisory authority and maintain an investment management team meeting the specified experience and competence standards.
Financial Regulatory Authority FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority
Resolution of the Board of Directors of the Authority No. (95) for the year 2021, dated 6/6/2021 Amending Resolution of the Board of Directors of the Authority No. (149) for the year 2018 Regarding the requirements and conditions for obtaining a license to practice direct investment activities
The Board of Directors of the Financial Regulatory Authority Having reviewed the Capital Market Law issued by Law No. (95) of 1992 and its executive regulations; and Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; and Resolution No. (113) of the Minister of Investment and International Cooperation for 2018 adding direct investment company activities to the activities of companies operating in the securities sector; and Resolution No. (149) of the Board of Directors of the Authority for 2018 regarding the requirements and conditions for obtaining a license to practice direct investment activities; and after approval by the Board of Directors in its session held on 6/6/2021;
Resolved:
(Article One)
The following clause shall replace Clause Six of Article One of Resolution No. (149) of the Board of Directors for 2018 regarding the requirements and conditions for obtaining a license to practice direct investment activities:
(Article One – Clause Six): The responsible manager (partner or general partners) in companies licensed to practice direct investment activities must have at least five years of experience in financing, securities markets, and financial institution management. This period is reduced to four years for those who successfully complete training courses in securities markets approved by the Authority.
Smart Village, Building 136, Giza, Egypt Postal Code: 110 Tel: +202-35370350 Fax: +202-35370036 WWW.FRA.GOV.EG Building Bridges not Walls
Financial Regulatory Authority FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority
If the general partner has not met the required experience period stipulated in this clause and is affiliated with an Egyptian or foreign company, it is required that the parent company to which the general partner belongs be subject to a supervisory authority with powers similar to those of the Authority (if it is a foreign company), and that it commit to providing the general partner with an investment management team meeting the experience and competence conditions specified in this clause.
(Article Two)
This Resolution shall be published in the Egyptian Gazette and on the websites of both the Authority, and it shall take effect from the day following its publication in the Egyptian Gazette.
Chairman of the Board of Directors of the Authority Dr. Mohamed Omran
Smart Village, Building 136, Giza, Egypt Postal Code: 110 Tel: +202-35370350 Fax: +202-35370036 WWW.FRA.GOV.EG Building Bridges not Walls