Regulatory Alerts2021-01-01
Circular No. 1 of 2021 Regarding the Establishment of a Database by Non-Banking Financial Entities on Services Provided to Clients
The Financial Regulatory Authority of Egypt issued Circular No. 1 of 2021 and Board Decision No. 187 of 2020 mandating non-banking financial entities to establish and continuously maintain a client service database. The regulation requires categorizing clients by gender, age group, and geographic region, with specific ownership and leadership thresholds for female representation in legal entities. Entities must submit quarterly reports detailing these classifications to the Authority within fifteen days following each reporting period, starting from June 30, 2020.
Financial Regulatory Authority FINANCIAL REGULATORY AUTHORITY
Circular No. (1) for the Year 2021 Regarding the Establishment of a Database by Companies and Entities Operating in Non-Banking Financial Activities on the Services They Provide to Their Clients
With reference to the Authority's Board of Directors Decision No. (187) for the Year 2020 regarding the above-mentioned subject (a copy is attached).
Insurance companies are required to prepare a database containing the services they provide to their clients, with such data classified according to the specifications stipulated in Article One of the aforementioned Decision. Companies are also obligated to submit quarterly reports to the Authority regarding their transactions with clients, detailing the aforementioned classification, within a deadline of fifteen days from the end of the reporting period, according to the attached form. The start date for collecting this data shall be June 30, 2020.
Please take note and alert relevant parties to take the necessary action.
Deputy Chairman of the Authority Advisor Rida Abdel Moeity
Dated: 4/1/2021
Financial Regulatory Authority FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority
Authority's Board of Directors Decision No. (187) for the Year 2020 dated 9/12/2020 Regarding the Establishment of a Database by Companies and Entities Operating in Non-Banking Financial Activities on the Services They Provide to Their Clients
The Board of Directors of the Financial Regulatory Authority Having reviewed the Law on Private Insurance Funds issued by Law No. (54) of 1975; and the Law on Supervision and Control of Insurance in Egypt issued by Law No. (10) of 1981; and the Capital Market Law issued by Law No. (95) of 1992; and the Law on Central Depository and Registration of Securities and Financial Instruments issued by Law No. (93) of 2000; and the Real Estate Financing Law issued by Law No. (148) of 2001; and Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; and Law No. (141) of 2014 regulating the activity of financing medium, small, and micro-enterprises; and the Law regulating financing leasing and factoring activities issued by Law No. (176) of 2018; and the Law regulating consumer financing activities issued by Law No. (18) of 2020; and after approval by the Authority's Board of Directors in its meeting held on 9/12/2020;
Decided
(Article One) Companies and entities operating in non-banking financial activities subject to the Authority's supervision and control are obligated to establish a database containing the services they provide to their clients. This database must categorize clients - at a minimum - according to the following specifications:
1- Client gender (Male - Female). 2- Client age group. 3- Geographic region for service provision.
With respect to legal entities, the female categorization mentioned in the preceding paragraph shall include the following two cases: 1- At least one woman owns a share of no less than (51%) of the company's or establishment's capital. 2- At least one woman owns a share of no less than (20%) of the company's or establishment's capital, provided that at least one woman holds the position of Chairman of the Board, Managing Director, Chief Executive Officer, or Deputy to any of them.
(Article Two) Companies and entities operating in non-banking financial activities subject to the Authority's supervision and control are obligated to continuously update the database referred to in Article One of this Decision. They are also required to submit quarterly reports to the Authority regarding their transactions with clients, detailing the aforementioned classification, within a deadline of fifteen days from the end of the reporting period.
(Article Three) 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 of the Authority Dr. Mohamed Omran