Back to the complete issue
Wednesday, 23 January 2019

Parliament, government want to regulate crowdfunding and real estate developers

LEGISLATION WATCH- Regulating all the things: Crowdfunding is now on the FRA’s priority list: Financial Regulatory Authority (FRA) boss Mohamed Omran outlined his agency’s list of legislative priorities in a briefing with reporters yesterday. The FRA chairman says the market regulator is looking to regulate crowdfunding as well as real estate developers and added that it is also looking at changes that would allow the microfinance law to possibly raise individual borrowing limits and ease the funding process. You can also expect insurance coverage for recipients of microfinance to be on the agenda at a cost of 0.0035% of total funding. The FRA is also debating whether to allow insurance companies to make their fiscal year end in December and not in June to bring the sector in line with other industries regulated by the FRA.

Draft Consumer Credit Act is with cabinet: The FRA has sent the draft Consumer Credit Act to cabinet for approval and expects it could clear the House of Representatives before the end of the current legislative season, Omran told reporters. The proposed law differentiates between retailers offering sales on installment and consumer finance houses: All consumer finance companies will be subject to the act, while retailers will fall under it only when on-installment sales break the EGP 25 mn mark.

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. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of Commercial International Bank (tax ID: 204-891-949), the largest private-sector bank in Egypt; 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; and Act Financial (tax ID: 493-924-612), the leading activist investor in Egypt; and Abu Auf (tax ID: 584-628-846), the leading health foodmaker in Egypt and the region.