Financial Regulatory Authority Board Resolution No. (156) of 2021 Amending Resolution No. (58) of 2018 on Licensing Rules for Banks and Investment Fund Companies

Financial Regulatory Authority

Head of the Authority - Financial Regulatory Authority Board Resolution No. (156) for 2021 dated 20/10/2021 Amending the Financial Regulatory Authority Board Resolution No. (58) of 2018 Regarding Licensing Rules, Regulations and Procedures for Banks and Certain Companies Engaging in Non-Banking Financial Activities or Investment Fund Activities

Board of Directors of the Financial Regulatory Authority Having reviewed the Capital Market Law issued by Law No. (95) of 1992; and the Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; and the Financial Regulatory Authority Board Resolution No. (58) of 2018 regarding licensing rules, regulations and procedures for banks and certain companies engaging in non-banking financial activities or investment fund activities; and following the approval of the Authority's Board at its meeting held on 20/10/2021;

Resolved:

(Article One)
The following two texts shall replace clauses (5) of Article Two and (4) of Article Seven (repeated) of the aforementioned Financial Regulatory Authority Board Resolution No. (58) of 2018:

(Article Two - Clause "5"):
5- The obligation to reserve an amount equivalent to (2%) of the fund's size, capped at five million Egyptian pounds, which shall be used for subscription in the fund's instruments and evidence of its deposit with the receiving entity shall be provided. The founding entity or entities may increase the reserved amount beyond the aforementioned cap. The fund shall issue single-value named investment instruments in exchange for full cash payment by subscribing investors, provided that the share of the company operating the activity itself in the reserved amount does not fall below (51%) when operating with other entities.

(Article Seven (repeated) - Clause "4"):
4- The obligation of the entity founding the fund on behalf of others to reserve an amount equivalent to (2%) of each issuance size, capped at five million Egyptian pounds, and the entity may increase the reserved amount beyond the stated cap.

(Article Two)
This Resolution shall be published in the Egyptian Gazette and on the websites of the Authority and the Egyptian Exchange, and shall take effect from the day following its publication in the Egyptian Gazette.

Chairman of the Board of Directors of the Authority Dr. Mohamed Omran

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