Regulatory Alerts2022-01-01
Financial Regulatory Authority Chairman's Decision No. (843) of 2022 (Updated Version in 2025)
The Financial Regulatory Authority issued Decision No. 843 of 2022 (updated in 2025) to mandate a special accounting treatment for foreign currency exchange rate fluctuations against the Egyptian Pound. The decision requires insurance companies and cooperative insurance associations to recognize net revaluation profits or losses of monetary assets and liabilities within Other Comprehensive Income, establishing a Special Reserve in shareholders' equity that can be used to offset accumulated losses, increase share capital, or settle Standard 47 liabilities. This exceptional treatment applies to financial periods starting before March 21–22, 2022, and ending on or after that date, with distribution of the reserve to shareholders requiring prior regulatory approval.