Has Beltone’s investment banking arm been unshackled? The board of the Financial Regulatory Authority (FRA) has reportedly informed Beltone Financial that it is lifting its suspension of Beltone’s investment banking arm, allowing it to resume normal operations as of this morning, according to a local press report. The FRA also cut to six months the period of time it requires Beltone’s brokerage arm to maintain an EGP 50 mn insurance cover. The decision has yet to be made public and Beltone declined to comment when we reached out to them to confirm the news.

Background: The FRA suspended Beltone’s IPO unit late last year for six months over alleged irregularities in its management of Sarwa Capital’s IPO, which saw the structured- and consumer-finance player’s shares nosedive 11% in their EGX debut. The authority also ordered Beltone’s brokerage arm to raise its insurance cover to EGP 50 mn and maintain it at that level for a year. The company denied the allegations and has pursued legal action against the FRA’s decisions. Its plea to the FRA’s appeals committee was turned down and Beltone said it was seeking a settlement.