Financial Regulatory Authority

Financial Regulatory Authority

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Chairman of the Authority

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Decision of the Board of Directors of the Financial Regulatory Authority

No. (74) of 2019 dated 20/6/2019
Regarding the amendment of the Authority's Board Decision No. (53) of 2018 Regarding the conditions for granting and maintaining licenses and the rules for share ownership of companies operating in non-banking financial activities

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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 the Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; and the Presidential Decree No. (192) of 2009 issuing the Basic Law of the Financial Regulatory Authority; and the Authority's Board Decision No. (53) of 2018 regarding the conditions for granting and maintaining licenses and the rules for share ownership of companies operating in non-banking financial activities; and upon the approval of the Authority's Board of Directors in its meeting held on 20/6/2019:

Decided

(Article One)

The establishment and licensing of companies that engage in the activity of establishing or participating in the establishment of companies or in increasing their capital (existing companies) shall be in accordance with the regulations stipulated in Chapter Three of the Capital Market Law issued by Law No. (95) of 1992 and the decisions issued in implementation thereof, without being bound by the ownership structure conditions required for companies wishing to practice one of the non-banking financial activities, as stipulated in item 2 of Article Four of the Authority's Board Decision No. (53) of 2018 regarding the conditions for granting and maintaining licenses and the rules for share ownership of companies operating in non-banking financial activities.

(Article Two)

The item regarding securities rating, classification, and arrangement companies included in Table No. «1» attached to the Authority's Board Decision No. (53) of 2018 regarding the conditions for granting and maintaining licenses and the rules for share ownership of companies operating in non-banking financial activities is hereby amended as follows:

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Page 2

Activity	Percentage of Contribution by Legal Entities or Financial Institutions
Companies Operating in the Securities Field
-1 Rating, Classification, and Arrangement of Securities	It is required that the contribution percentage owned by one of the international entities in the credit rating field shall not be less than 10% of the capital of the securities rating, classification, and arrangement company, and it is not required that legal entities or financial institutions be present among the company's founders.

(Article Three)

This Decision 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.

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Chairman of the Board of Directors of the Authority Dr. Mohamed Omran 46076

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Smart Village, Building 136, B. Giza, Egypt Postal Code: 12577 Tel.: +202 35345350 - Fax.: +202 35370036 info@fra.gov.eg

Smart Village, Building no. B-136, Giza
Postal Code: 12577
Tel.: (00202) 35345350 - Fax.: (00202) 35370036 www.FRA.gov.eg