Regulatory Alerts2019-01-01
Decision of the Board of Directors of the Financial Regulatory Authority No. (61) of 2019
The Financial Regulatory Authority Board of Directors issued Decision No. (61) of 2019 to amend the membership and formation rules for Sharia Supervisory Boards overseeing Sharia-compliant Sukuk issuances. The amendment mandates that the committee consist of five prominent Islamic Sharia scholars alongside legal, financial, and banking specialists, all of whom must be formally registered in an official Authority database upon Board approval. Additionally, it explicitly prohibits any member of the Central Sharia Supervisory Board from concurrently serving on subsidiary Sharia boards of Sukuk-issuing entities.
Chairman of the Authority
Decision of the Board of Directors of the Financial Regulatory Authority
No. (61) of 2019 dated 30/4/2019
Amending Decision of the Board of Directors of the Authority No. (47) of 2019 regarding the rules for the formation and membership requirements of Sharia Supervisory Boards for Sukuk issuances compliant with Islamic Sharia principles
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 Presidential Decision No. (197) of 2009 issuing the Basic Statute of the Financial Regulatory Authority;
and Decision of the Board of Directors of the Authority No. (47) of 2019 regarding the rules for the formation and membership requirements of Sharia Supervisory Boards for Sukuk issuances compliant with Islamic Sharia principles;
and the approval of the Authority's Board of Directors in its meeting held on 30/4/2019;
Has Decided
(Article One)
The following texts shall replace the first paragraph of Article Two, and Item (1) of the first paragraph of Article Three of Decision of the Board of Directors of the Authority No. (47) of 2019 regarding the rules for the formation and membership requirements of Sharia Supervisory Boards for Sukuk issuances compliant with Islamic Sharia principles, as referenced:
Article Two – First Paragraph:
The Committee referred to in Article One of this Decision shall be composed of five members from prominent Islamic Sharia scholars, along with some specialists possessing extensive experience in legal, financial, and banking fields.
Article Three – First Paragraph – Item (1):
1- That committee members be registered in a special register maintained for this purpose by the Authority, for members whom the Board of Directors approves for joining the committee.
(Article Two)
A third paragraph shall be added to Article Three of Decision of the Board of Directors of the Authority No. (47) of 2019 regarding the rules for the formation and membership requirements of Sharia Supervisory Boards for Sukuk issuances compliant with Islamic Sharia principles, as referenced, with the following text:
Under no circumstances shall a member of the Central Sharia Supervisory Board serve as a member of any of the subsidiary Sharia Supervisory Boards of the Sukuk issuing entities.
(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
Smart Village, Building No. B-136, Giza, Egypt
Postal Code: 12577
Tel.: +202 35345350, Fax: +202 35370036
info@fra.gov.eg
Smart Village, Building no. B-136, Giza
Postal Code: 12577
Tel.: (00202) 35345350 - Fax.: (00202) 35370036
www.FRA.gov.eg