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Tuesday, 30 November 2021

Fintech regs get preliminary House approval

A draft law that would regulate the fintech space received a preliminary nod from the House of Representatives during its plenary session yesterday, according to Al Borsa. The new law would, if passed, regulate the use of fintech to deliver non-banking financial services (NBFS) in a bid to promote financial inclusion and expand the number of beneficiaries.

FRA to take the lead on regulating the fintech space: Under the bill, the Financial Regulatory Authority (FRA) would be the only entity in charge of licensing and regulating fintech companies. It would also set transparency and governance standards and be charged with protecting consumer rights.

Background: The FRA completed the first draft of the bill in July before approving and shipping it off to the House in September. The new regulation covers crowdfunding, robo-advisory, nano-finance and insurtech, and introduces penalties for regulatory breaches including imprisonment or fines of EGP 200k-1 mn.

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