New guidelines would split regulatory authority over holding companies between GAFI and FRA
REGULATION WATCH- Speaking of holding companies, new guidelines would make FRA split regulatory authority over private sector holding companies between GAFI and FRA: The Investment Ministry is reportedly drafting amendments to existing regulations that would transfer jurisdiction over the affairs of some private sector holding companies to the General Authority for Freezone and Investments (GAFI) from the Financial Regulatory Authority (FRA). Under new guidelines, the FRA’s jurisdiction will only extend to holding companies with half or more of their assets invested in the non-banking financial sector, with GAFI assuming regulatory responsibility over the rest, unnamed officials tell Al Mal. The amendments are meant to help the FRA focus its efforts and resources on non-banking financial companies, the officials also said, adding that they expect 70% of all registered holding companies in Egypt to be moved to GAFI’s domain. Expect a significant bureaucratic tussle over this one if the report is true.