Egypt’s consumer finance players now need to ensure compliance with FRA
REGULATION WATCH- Consumer finance players face new oversight requirements under FRA: The boards of consumer finance companies must now set up committees to monitor performance and ensure regulatory compliance after the new Consumer Credit Act brought the sector under the Financial Regulatory Authority’s (FRA) purview, according to a statement outlining a set of new decisions. The companies are also now required to submit yearly financial statements to the regulator. The full list of new decisions for the sector can be found on the FRA’s website.
Background: The Consumer Credit Act, which was ratified by the president last month, introduces a new regulatory framework for consumer finance companies governing business creation and operations, as well as provides companies that finance purchases of consumer durables with more clarity regarding expanding their businesses. Under the legislation, the FRA was established as the sector’s primary regulator.