Regulatory Alerts2017-01-01
Circular No. 4 for 2017 Regarding the Permissibility of Paying Insurance Broker Commissions in a Currency Other Than the Egyptian Pound for Policies Issued in Foreign Currencies
The Financial Regulatory Authority issued Circular No. 4 for 2017 to mandate that insurance brokers generally receive commissions in Egyptian Pounds, while permitting foreign currency payments as a strict exception for foreign currency policies. This exception requires the insurance contract to explicitly state that the foreign currency premium includes the broker's commission and mandates that all related transactions be processed through banks authorized to handle foreign currency. The directive aligns with Article 42 of the Central Bank Executive Regulations, which generally requires Egyptian Pound transactions but allows foreign currency dealings when contractually stipulated and routed through authorized banking channels.
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