Regulatory Alerts2020-01-01
Decision of the Board of Directors of the General Authority for Financial Supervision No. (45) of 2020 on Professional Liability Insurance for Financial Consulting and Licensed Valuation Entities
The Financial Regulatory Authority (FRA) of Egypt issued Decision No. 45 of 2020 mandating that licensed property and liability insurers provide professional liability coverage for financial consulting and valuation firms registered or seeking registration with the Authority. The decision requires insurance policies to cover professional negligence against Egyptian Financial Valuation Standards and basic performance guidelines, with coverage amounts set at double the firm's annual fees (minimum 100,000 EGP) and a minimum policy duration of three years. Furthermore, the decision stipulates that policies cannot be cancelled without an official directive from the FRA and takes effect the day after publication in the Egyptian Gazette.
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