Presidential Decree No. 260 of 2010 on the Basic Statute of the Financial Services Institute

Official Gazette - Issue No. 35 Rec. (A) on 6 September 2010 3

Presidential Decree of the President of the Arab Republic of Egypt No. 260 of 2010 on the Basic Statute of the Financial Services Institute

President of the Republic:
Having reviewed the Constitution;
And Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments; And Presidential Decree No. 93 of 2009 designating the competent Minister to implement the provisions of Law No. 10 of 2009; And the Basic Statute of the Financial Regulatory Authority issued by Presidential Decree No. 192 of 2009; And Decision No. 32 of 2008 of the Chairman of the Egyptian Insurance Authority establishing the Egyptian Insurance Institute; And after approval by the Council of Ministers in its session held on 28/7/2010;

Decided:

(Article 1)
The Financial Services Institute shall be subordinate to the Financial Regulatory Authority, shall possess legal personality, and its main headquarters shall be in the Sixth of October Governorate.
The Institute's Board of Directors may, by decision, establish branches within the Arab Republic of Egypt as required by operational needs.

(Article 2)
The Institute shall specialize in developing skills in the field of non-banking financial services to advance scientific progress, consolidate the principles of sound professional practice, and achieve the highest level of practical and scientific competence for those interested in this field, equipping them with technical and administrative expertise. The Institute shall also specialize in preparing studies and research, providing data, information, and statistics related to the non-banking financial sector, and working to disseminate financial, advisory, and awareness culture, as well as introducing the latest international practices in non-banking financial services. To exercise its competencies, the Institute shall undertake all necessary and important actions, particularly the following:
(a) Training employees of the Financial Regulatory Authority and continuously developing their professional capabilities.
(b) Preparing general and specialized programs necessary to qualify individuals and entities working in the non-banking financial services field.
(c) Holding and organizing seminars, conferences, workshops, and training courses necessary to qualify employees and professionals in the non-banking financial sector within or outside the Arab Republic of Egypt. (d) Holding and organizing seminars, conferences, workshops, and training courses necessary to qualify employees and professionals in the non-banking financial sector within or outside the Arab Republic of Egypt. (e) Dispatching missions abroad to monitor developments and updates in fields related to the Institute's activities. (f) Developing the existing technical and administrative cadres performing training duties in the non-banking financial sector, along with all necessary administrative work to advance these duties. (g) Liaising with domestic and international training centers, institutes, and specialized educational and professional bodies to exchange expertise in non-banking financial services. (h) Qualifying individuals interested in non-banking financial services at the local and regional levels to obtain academic and professional degrees in this field from specialized scientific institutes and bodies. (i) Assisting in raising awareness of financing activities and instruments in Egypt.

(Article 3)
The Chairman of the Board of Directors may, by decision, engage specialists and experts in the field of non-banking financial markets and instruments from within or outside the Arab Republic of Egypt to support the Institute's capacity to exercise its competencies. The Institute shall have a Board of Directors chaired by the Chairman of the Financial Regulatory Authority, with the membership of the heads of three professional supervision associations or companies, and five members experienced in financial, economic, and legal research and studies, selected by the Authority's Board of Directors, including one Vice Chairman who shall deputize for the Chairman in his absence. The formation of the Board and the determination of its members' allowances and compensations shall be issued by a decision of the Financial Regulatory Authority's Board of Directors. The Board's term shall be three years, renewable. The Board shall meet at least once a month, or whenever necessary upon request by the Chairman or Vice Chairman. A quorum shall consist of a majority of members, and decisions shall be passed by a majority vote. (Article 4) The Institute's Board of Directors is the supreme governing authority over its affairs and operations, responsible for formulating the policies necessary to achieve its objectives and monitoring their implementation, and shall, for this purpose, take any decisions it deems necessary for the following:
(a) Formulating the Institute's general policy and monitoring its implementation.
(b) Approving the scientific and technical content of the training programs undertaken by the Institute.
(c) Approving the Institute's annual training programs and reports on their implementation.
(d) Notifying the Financial Regulatory Authority's Board of Directors of these reports.
(e) Approving the Institute's organizational structure.
(f) Approving the Institute's draft budget and final account.
(g) Reviewing the acceptance of grants and donations received by the Institute from various entities and submitting them to the Financial Regulatory Authority's Board of Directors for consideration regarding their acceptance. (h) Proposing the training fees received by the Institute from trainers or their affiliated entities, as well as fees for services rendered by the Institute to third parties; the determination of training and service fees shall be issued by a decision of the Financial Regulatory Authority's Board of Directors. (i) Proposing any amendments to the Institute's Basic Statute, based on practical implementation results and future needs. (j) Determining the investment avenues for the Institute's funds.

(Article 5)
The Institute's Board of Directors may form permanent or temporary working groups among its members to assist in performing its duties, and may include members from within or outside the Institute in these groups. Based on the Chairman's proposal, the Board may invite any experts in the Institute's field of work to attend its meetings, but none of them shall have voting rights when decisions are issued.

(Article 6)
The Institute's Board of Directors shall appoint an Executive Director nominated by the Chairman of the Board from among those with expertise and competence in non-banking financial services. Their appointment and financial treatment shall be determined by a decision of the Institute's Board of Directors, for a term of three years, renewable. The Executive Director shall attend Board of Directors meetings without having a deliberative vote.

(Article 7)
The Executive Director shall be responsible for managing the Institute's affairs and supervising operations in its training, research, administrative, financial, and other activity areas, and shall specifically undertake the following:
(a) Proposing the Institute's general policy and annual programs across all its activities and presenting them to the Board of Directors for approval, and developing implementation plans and programs in accordance with the Board's approval. (b) Preparing the Institute's draft budget and presenting it to the Board of Directors. (c) Monitoring the implementation of the Board of Directors' decisions.

(Article 8)
(d) Supervising the preparation of studies, research, bulletins, journals, and books issued by the Institute.
(e) Preparing the draft annual report on the Institute's activities and presenting it to the Board of Directors.
(f) Proposing contracts with experts, trainers, technicians, and researchers in accordance with established rules, and presenting them to the Chairman of the Board.
(g) Preparing or reviewing draft cooperation agreements and memoranda of understanding to be concluded by the Institute and presenting them to the Chairman of the Board for approval.
(h) Any other tasks assigned to him by the Institute's Board of Directors or the Chairman.

(Article 9)
The selection of experts, trainers, technicians, and researchers who are not employees of the Institute to participate in training activities and the preparation of studies and research shall follow the following rules:
(a) The conditions specified by the Institute's Board of Directors for application.
(b) The applicant expert, trainer, technician, or researcher must possess exceptional expertise and competence in economic affairs, markets, and non-banking financial instruments related to the Institute's field of work. (c) Negotiations shall be conducted between experts, trainers, technicians, and researchers who meet the conditions. (d) As determined by a specialized technical committee formed by the Chairman of the Board. (e) None of them shall have interests that conflict with the Institute's duties or could affect the proper performance of its obligations.

(Article 10)
The Institute shall have an independent budget prepared in the format of the State's general budget.

(Article 11)
The Institute's fiscal year shall begin and end with the State's fiscal year. The Institute's revenues shall be deposited into a special account, and expenditures from this account shall be made in accordance with the applicable financial regulations. The balance of this account at the end of each fiscal year shall be carried forward to the following fiscal year.

(Article 12)
The Institute's revenues shall consist of:
(a) Appropriations allocated to it by the Authority.
(b) Amounts paid to the Institute in exchange for training or services rendered to third parties.
(c) Donations, gifts, and grants received by the Institute from various entities, the acceptance of which shall be decided by the Financial Regulatory Authority's Board of Directors.
(d) Any other revenues in exchange for services rendered by the Institute to third parties.
(e) Returns from the investment of the Institute's funds.
A decision by the Financial Regulatory Authority's Board of Directors, based on a proposal from the Institute's Board of Directors, shall determine the consideration referred to in items (b) and (d).

(Article 13)
The Institute's funds are public funds, and the Central Auditing Organization shall be responsible for auditing the Institute's accounts.

(Article 14)
The Egyptian Insurance Institute is hereby abolished, and its rights and revenues shall transfer to the Financial Services Institute, which shall assume its obligations. Employees of the Egyptian Insurance Institute shall be transferred to the Financial Regulatory Authority under the same employment and financial status.

(Article 15)
This Decree shall be published in the Official Gazette and shall take effect from the day following its publication.
Issued at the Presidency on 27 Ramadan 1431 AH (Corresponding to 6 September 2010 AD) Hosni Mubarak