LEGISLATION WATCH- A trickle of news on the next wave of economic legislation, including insurance, economic courts and consumer protection acts
First off, the new Insurance Act, which the Financial Regulatory Authority (FRA) is drafting with an eye to tighten regulation of the sector, will include amendments that govern pension and private social welfare funds, said FRA deputy head Reda Abdel Moty. These changes include raising a fund’s minimum capitalization to EGP 100k from a current EGP 1,000. The law will also put a cap on the number of subscribers to the fund, he added. Abdel Moty appears to frame this as part of a wider crackdown on the number of unregistered welfare funds, which will be subject to asset freezes in a forthcoming enforcement drive, according to Al Mal.
Amendments to the Economic Courts Act are stalled. The Council of State (Maglis El Dawla) has reportedly raised objections to what it says the lack of input from ministries and government agencies impacted by the law. In its review of the law, the Council says that the CBE, the Financial Regulatory Authority, and the Finance Ministry should have been consulted as per the constitution, AMAY reports. The amendments, which are meant to expedite the dispute resolution process, also grants Economic Courts jurisdiction over criminal violations of the Capital Markets Act, the Anti-Money Laundering Act, the Collateralized Assets Act, and the Civil Aviation Act, according to Youm7. The law will presumably undergo a rewrite by the Ismail cabinet before being introduced to the House of Representatives.
It also looks like plenary discussions in the House on the Consumer Protection Act will take place next Sunday, Consumer Protection Authority chief Atef Yacoub said, according to AMAY.
In other legislative news, the Universal Healthcare Act will cover overseas medical treatment in some cases, Health Minister Ahmed Rady said yesterday, without elaborating. The law’s executive regulations are currently with the Council of State for review and should before the new scheme is implemented in July.