LEGISLATION WATCH- FRA wants business input into its proposed Consumer Credit Act: The Financial Regulatory Authority (FRA) has opened consultations with the business community over a proposed law to regulate consumer finance providers, unnamed sources told Al Mal. The draft consumer credit bill, which the FRA is set to introduce next year, will regulate how companies sell consumer goods on installments.

Who’s covered by the proposed bill? The parties discussed the need to distinguish between companies that operate as consumer finance providers (such as EFG Hermes’ valU or Sarwa’s Contact Cars) on the one hand and retailers and manufacturers that offer installment plans to as part of their sales strategy (such as home appliances chain B.Tech). All consumer finance players will be subject to the legislation if it passes in its current form, but it proposes to bring in retailers and manufacturers only if more than 25% of their annual sales are made on installment plans. Companies with on-installment sales north of EGP 15-25 bn and those that offer long-term plans of six months or more could also see themselves covered by the bill.