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Tuesday, 30 July 2019

FRA gives itself all regulatory power over industry in Insurance Act

LEGISLATION WATCH- Draft Insurance Act grants sweeping new powers to market regulator: The Financial Regulatory Authority (FRA) will be granted sweeping new powers to regulate the insurance industry under the final draft of the Insurance Act, Al Masry Al Youm reports. The watchdog would vet all candidates applying for board positions in insurance companies, have the power to create new companies and issue licenses, and create new M&A regulations. It would also become responsible for regulating private insurance funds, and will establish a committee to focus on providing insurance for SMEs. The bill will be discussed by the FRA board at its next meeting.

Background: The FRA has largely kept minimum capital requirements for property and life insurance companies unchanged in the final draft of the new Insurance Act, sources had told the local press. The latest draft also reverses an article that banned any insurance company shareholder from acting as chairman or CEO. The bill will still double the ceiling for life insurance payouts to EGP 80k, from EGP 40k currently.

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