Regulatory Alerts2010-01-01
Circular No. 5 of 2010
The General Financial Regulatory Authority mandates that all supervised entities, including securities firms, listed companies, public offerings, investment funds, insurance entities, and real estate financing companies, must exclusively engage auditors registered in the Authority’s official Register. The directive prohibits contracting with unregistered auditors and requires companies to secure a prior confirmation letter from the Authority’s Quality Control Unit verifying the auditor’s active registration status before commencing any assignment. This measure enforces compliance with existing capital market, insurance, and real estate financing laws while strengthening audit quality oversight through centralized registration controls.
Circular No. (5)
Issued on 9/4/2010
Regarding the Contracting of Companies Subject to the Authority's Supervision with Registered Auditors
in the Authority's Register of Auditors Only
To:
- Companies operating in the securities sector
- Companies listed on the Egyptian Exchange
- Publicly held companies
- Investment funds established by banks and insurance companies
- Insurance and reinsurance companies and cooperative insurance associations
- Real estate financing companies
With reference to Article 11 of Law No. 95 of 1992 concerning the Capital Market, as amended by Law No. 123 of 2008,
and to Article 48 of Law No. 10 of 1981 concerning supervision and oversight of insurance in Egypt,
and to Article 33 of Law No. 148 of 2001 concerning real estate financing,
and to Article 3 of Law No. 10 of 2009 concerning the regulation of oversight on non-Egyptian markets and financial instruments,
and to General Capital Market Authority Board of Directors Decision No. 33 of 2009 concerning registration, continued registration, and deregistration criteria in the Authority's Register of Auditors,
and to General Financial Regulatory Authority Board of Directors Decisions Nos. 22, 23, and 24 of 2009 concerning the Authority's Register of Auditors, the prohibition of auditing companies under the Authority's supervision by auditors not registered in the Register, and the establishment of the Quality Control Unit for Registered Auditors at the Authority.
Please refrain from contracting or renewing contracts with auditors other than those registered in the Register maintained by the Authority. It is also mandatory to obtain a letter from the Quality Control Unit for Registered Auditors at the Authority addressed to the company, confirming the continued registration of the auditor prior to contracting for the performance of the assignment.
Hesham Ibrahim Supervisor of the Central Administration for Technical Office Affairs
Head Office: Al-Darb Al-Hakima, Building 5 - 84 B Kilometer 28, Cairo / Alexandria Desert Road 6th of October Governorate, Postal Code: 12577
Telephone: 202 2527 0040 Fax: 202 2527 0041 Email: info@efsa.gov.eg Website: www.efsa.gov.eg