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Thursday, 13 June 2019

Draft law granting Egypt’s FRA autonomy revealed

LEGISLATION WATCH- Leaked draft law would grant autonomy to the FRA: The full draft of a proposed law to grant the Financial Regulatory Authority (FRA) operational autonomy from the government has been published by Al Mal. The bill, if passed, would give the authority status as a separate legal entity with its own balance sheet. The authority’s head would be appointed by the president and would effectively have cabinet rank. The bill is currently being discussed by the House of Representatives and would need to be passed by the general assembly before El Sisi signs it into law.

Background: The Madbouly Cabinet approved the bill in February, paving the way for the authority to gain technical, financial, and administrative autonomy. Among the details released at the time was that it would require the authority to submit an annual report on its activities and the performance of the non-banking financial services industry to the president, prime minister, and House speaker. It would also outline the structure of the authority and the procedures for appointing its head and board members. The regulator was established in 2009 as an independent entity but is still subject to oversight from the cabinet.

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