Financial Regulatory Authority

FINANCIAL REGULATORY AUTHORITY

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Chairman of the Authority

Financial Regulatory Authority Board Decision No. (172) of 2020 dated 2020/11/18

Amending Financial Regulatory Authority Board Decision No. (58) of 2018 regarding the rules, regulations, and licensing procedures for banks and certain companies conducting non-banking financial activities to conduct investment fund activities themselves or with others

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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 Financial Regulatory Authority Board Decision No. (58) of 2018 regarding the rules, regulations, and licensing procedures for banks and certain companies conducting non-banking financial activities to conduct investment fund activities themselves or with others;

and having approved the Authority's Board Decision convened on 2020/11/18;

Decided

(Article One)

The following clause shall replace Clause (7) of Article Seven of Financial Regulatory Authority Board Decision No. (58) of 2018 regarding the rules, regulations, and licensing procedures for banks and certain companies conducting non-banking financial activities to conduct investment fund activities themselves or with others:

(Article Seven – Clause "7")

• 7 - The fund shall prepare independent financial statements in accordance with Egyptian accounting standards and consistent with the nature of its activity. The fund's accounts shall be audited by one or more auditors registered in the special register maintained by the Authority for this purpose. The auditor(s) must be independent from both the investment manager and parties related to the fund. Furthermore, if more than one auditor reviews the fund's accounts, they must be independent of each other.

The fund's auditor shall have access to the fund's books, the right to request data and clarifications, and the authority to verify assets, and shall comply with Egyptian auditing standards and prepare a report on the audit findings.

In the event that the fund's accounts are audited by more than one auditor, the auditors must prepare a joint report, specifying any differences of opinion and each auditor's viewpoint in case of disagreement.

Under all circumstances, a single auditor shall not audit the accounts of more than three funds simultaneously, taking into account the avoidance of conflicts of interest as stipulated in the prospectus or information memorandum, as applicable.

(Article Two)

This Decision shall be published in the Egyptian Gazette and on the websites of both the Authority and the Egyptian Exchange, and shall take effect from the day following its publication in the Egyptian Gazette. Any provision conflicting with its terms is hereby repealed.

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Chairman of the Board of Directors of the Authority

Dr. Mohamed Omran

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Smart Village, Building 136, Giza, Egypt
Postal Code: 110
Telephone: +202 3545950
Fax: +202 35370036
WWW.FRA.GOV.EG

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