Back to the complete issue
Wednesday, 9 May 2018

FRA passes new rules for investment funds established by banks, non-banking financial services firms

FRA passes new rules for investment funds established by banks, non-banking financial services firms: The Financial Regulatory Authority (FRA) issued new regulations to govern the establishment of investment funds, FRA boss Mohamed Omran said in a statement yesterday carried by Youm7. The new regulations allow banks, micro financing firms, insurance companies, as well brokerage and securities firms to set up any type of investment fund apart from real estate, independently or with local, regional, or international partners, after obtaining FRA and central bank approval. They also stipulate that securities firms — which received the greenlight last month from FRA to establish mutual funds — need to have been in the market for at least three years to seek regulatory approval. Institutions also need to set aside a minimum EGP 5 mn for fund activities and provide at least 51% of that amount, according to Omran.

In related news, the FRA also signed off on new regulations that allow insurance companies to invest up to 40% of their available reserve in securities, up from 30% previously, FRA deputy head Khaled El Nashar tells Reuters’ Arabic service. Companies can choose to invest in listed or non-listed securities, according to the new regulations, which FRA’s board approved at the end of April.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.