Financial Regulatory Authority Board Resolution No. 41 of 2022

Electronic copy considered valid for trading

Egyptian Gazette – No. 76 on March 31, 2022

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Financial Regulatory Authority

Board Resolution No. 41 of 2022
Dated March 8, 2022
Amending Board Resolutions No. 111 of 2015 regarding the rules and standards for conducting real estate financing activities, and No. 158 of 2020 regarding the financial solvency standards for licensed real estate financing companies.

The Board of Directors of the Financial Regulatory Authority, Having reviewed the Real Estate Financing Law issued by Law No. 148 of 2001 and its executive regulations; Having reviewed Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments; Having reviewed Board Resolution No. 111 of 2015 regarding the rules and standards for conducting real estate financing activities; Having reviewed Board Resolution No. 158 of 2020 regarding the financial solvency standards for licensed real estate financing companies; And after approval by the Board of Directors in its session held on March 8, 2022; Resolved:

(Article One)
The following texts replace clauses (first – "4", and second – "2") of Article Eight of Board Resolution No. 111 of 2015 regarding the rules and standards for conducting real estate financing activities:

Article Eight – (first – clause 4):
-4 The value of financing granted for residential purposes to a single investor shall not exceed 15% of the company’s capital base, applicable to natural persons, their spouses, and minor children.

Electronic copy considered valid for trading Egyptian Gazette – No. 76 on March 31, 2022

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Article Eight – (second – clause 2):
-2 The value of financing granted for non-residential purposes to a single investor shall not exceed 30% of the company’s capital base, whether for natural persons (including their spouses and minor children) or for a single legal entity and its related parties.

(Article Two)
The following text replaces the text of Article (2) of the financial solvency standards for licensed real estate financing companies, attached to Board Resolution No. 158 of 2020 referenced above:

Article (2):
Concentration Risks:
-1 Regarding residential purposes:
The value of financing granted for residential purposes to a single investor shall not exceed 15% of the company’s capital base, applicable to natural persons, their spouses, and minor children. -2 Regarding non-residential purposes:
The value of financing granted for non-residential purposes to a single investor shall not exceed 30% of the capital base, whether for natural persons (including their spouses and minor children) or for a single legal entity and its related parties.

(Article Three)
This Resolution shall be published in the Egyptian Gazette and on the Authority’s electronic website, and shall take effect from the day following its publication date.

Chairman of the Board of Directors
Dr. Mohamed Omran