Board of Directors Secretariat

Decision of the Board of Directors No. (102) of 2015

Dated 6/9/2015

Regarding the Rules and Regulations for the Contracting of Private Insurance Funds with Management Services Companies and Service Performance Requirements

The Board of Directors of the General Authority for Financial Supervision

Having reviewed the Constitution:

• The Law on Private Insurance Funds issued by Law No. (54) of 1975 and its executive regulations;
• The Capital Market Law issued by Law No. (95) of 1992 and its executive regulations;
• Law No. (10) of 2009 concerning the regulation of supervision over markets and non-banking financial instruments;
• Presidential Decision No. (192) of 2009 issuing the Statute of the General Authority for Financial Supervision;
• The approval of the Authority's Board of Directors in its session held on 6/9/2015;

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Article One

Contracting with a Management Services Company

The Board of Directors of a private insurance fund may contract with a management services company licensed by the Authority to practice management services in the field of investment funds, in order to manage the fund's member register, the register of member partnerships, and other member data required to be maintained therein, as well as to distribute newsletters and invitations to general assemblies. All of the foregoing shall be in accordance with the rules and regulations set forth in this Decision.

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Article Two

Register of Management Services Companies for Private Insurance Funds

The Authority shall maintain a register of management services companies for investment funds authorized to provide management services to private insurance funds as set forth in this Decision. The conditions for registration in the register are:

a. The company must hold a valid license from the Authority to practice management services in the field of investment funds and have practiced it for at least one full year.

b. The Authority must verify the availability of necessary competencies and infrastructure and IT requirements to provide record management services for private insurance funds efficiently.

c. At least two employees of the company must attend a training course in the field of private insurance funds, conducted by the Authority's Financial Services Institute.

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Article Three

Regulations for a Private Insurance Fund Contracting a Management Services Company

To enable a private insurance fund to contract with a management services company, the following must be adhered to:

a. The contracted company must be registered in the Register of Management Services Companies for Private Insurance Funds.

b. The contract must contain the requirements stipulated in Article Four of this Decision.

c. The obligation to obtain prior approval from the Authority for the contracting and any subsequent amendments thereto, by submitting a certified true copy of the contract concluded with the management services company, accompanied by a copy of the minutes of the fund's Board of Directors approving said contract.

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Article Four

Contract Terms

The contract concluded between a private insurance fund and a management services company must include the minimum data as follows:

a. The contract shall specify all services entrusted to the management services company, including: managing member registers, managing member partnership registers, distributing newsletters and invitations to general assemblies, and managing other data pertaining to members.

b. The contract shall specify the data required to be stored and updated in the registers, service performance schedules, reports required from the fund, and other notifications and data required to be sent to members, while adhering to the service performance requirements stipulated in Article Five of this Decision.

c. Obligations of the management services company, including in particular the following:

1. The obligation to ensure that the company possesses the facilities and means enabling it to perform the contracted services.

2. The obligation to establish a work system and rules that ensure the proper performance of entrusted tasks.

3. In particular, the accuracy and regularity of entries in the registers and the preservation of supporting documents for all recorded items.

4. The obligation to comply with the service performance requirements entrusted to it as set forth in this Decision and any subsequent amendments thereto.

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Article Five

Service Performance Requirements

Both the private insurance fund and the management services company shall comply with the service performance requirements set forth below upon contracting for any of them:

a. Registration in the Member Register

1. Registration in the register shall be conducted in accordance with the fund's statute and general assembly resolutions related to membership in the fund.

2. The register must include the minimum of the following data for each fund member:

• Member name
• Membership number
• Date of birth and age at joining the fund

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• Mailing method and details
• Identity verification number
• Membership type (founding / non-founding)
• Date of appointment at the workplace
• Date of credit/entry into the fund
• Membership status
• Date of change in membership status
• Previous duration outside the entity
• Duration of leaves and secondments
• Date of membership termination
• Reason for membership termination

3. Registration in the register shall occur after verifying the accuracy and integrity of the data prior to its entry and storage in the database, including verifying that the new member complies with the fund's membership conditions (as stipulated in the statute).

4. Preparing statistical reports related to membership, including a statement clarifying the number of members at the beginning of the year – resignation – reaching retirement age – disability, etc., up to the number of members at the end of the year.

b. Registration in the Member Partnership Register

1. Registration in the register shall be conducted in accordance with the fund's statute (subscription schedule and due dates), and resolutions issued to amend subscriptions after verifying their approval by the Authority.

2. Registration shall be based on the detailed data notified by the fund to the company regarding the details of member partnership accounts, and the company must verify the accuracy and integrity of the data and supporting documents.

3. The register shall include the details of accounts for members subscribed to the fund since the commencement of their subscriptions and all amounts paid throughout the period, such that a separate account is maintained for each member (identified by membership number and name), including the following data:

• Due date, amount paid, and its source (fund member subscription / employer contribution / self-funded / cash payment by the member for joining or founding or membership / payment by the member for leaves and secondments / or other sources)
• Determination of the value of collected late fees (if any)
• A summary statement of the total amounts paid by the member according to different sources

4. Preparing statistical reports related to the member partnership register, including a statement of monthly subscriptions collected from members, as well as contributions from employers and self-funded amounts paid, and a statement of subscriptions for new members or those whose owners stopped payments during the year, or a statement of amounts paid by members as joining fees during the period.

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Article Six

Publication

This Decision shall be published on the Authority's electronic website and in the Egyptian Gazette, and shall take effect from the day following its publication date.

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Board of Directors

Sherif Samy

General Authority for Financial Supervision
Office of the Chairman
46076