Knowledge Bank

يتضمن هذا القسم المصطلحات الخاصة بالأسواق المالية غير المصرفية والتعريفات الهامة والمعلومات المختلفة ورسائل حماية المتعاملين بالأسواق المالية غير المصرفية 

Do not worry if your investments have decreased in value, this does not necessarily mean any abuses or mistakes by your brokerage company. This could be due to normal market fluctuations. Remember, investing in the Stock Market involves risk, and there’s no guarantee of always making money. The Stock Market is a two-way street, with both potential gains and losses.

FRA Board of Directors Functions and Powers were defined in accordance with Article Ten of Presidential Decree No. 193 of 2009 issuing FRA’s  Statute, including the following:

  • Developing the Authority’s general strategy and executive policies and monitoring their implementation.
  • Laying down the executive rules to regulate the activities under the Authority’s supervision and control.
  • Setting the rules of control and inspection of entities and individuals subjected to the Authority’s supervision.
  • Determining fees for the services provided by the Authority.
  • Approving the organizational structure of the authority, financial and administrative regulations and workers affairs without adhering to the regulations and systems in force in public and governmental bodies in this regard.
  • Setting rules for seeking the assistance of local and foreign expertise .
  • Approving the Authority’s financial budget and its financial statements. In addition to setting rules for investing the Authority’s funds.
  • Determining the categories of the development fee stipulated in Article 14 of Law No. 10 of 2009.

Expressing opinions on all draft laws, regulations and decisions related to the Authority’s competence in non-banking financial markets and instruments

    • FRA representatives
    • Central Bank of Egypt representative
    • Ministry of Social Solidarity representative
    • Micro, Small and Medium Enterprises Development Agency (MSMEDA) representative
    • Two leaders from NGOs and associations
    • One expert specializing in finance or civil work

Some investors in the market follow this investment policy but sometimes it does not represent a successful policy. A better approach is to buy undervalued stocks in solid companies but avoid buying just any stock that is dropping.

Microfinance Associations and NGOs – Category (A)

whose financing portfolios exceed 50 million pounds

Microfinance Associations and NGOs – Category (B)

whose financing portfolios between  10 million pounds and 50 million pounds

Microfinance Associations and NGOs – Category (C)

whose financing portfolios are less than 10 million pounds

Different financial channels available to people who need loans to cover personal expenses, not for commercial or professional activities

They are individuals who borrow money for personal needs, not business-related expenses, according to Law No. 18 of 2020 on consumer finance.

Producers or distributors of goods engaged in consumer finance activity – once the amount of funding granted exceeds EGP 25 million.

  • Coupon Value

A set amount of profit per share distributed to stockholders annually

  • Earnings multiplier

Compares the current share price of a company with its per-share earnings

  • Highest Price

Indicates the highest point the stock reached in terms of price during trading session.

  • Lowest price

Indicates the lowest point the stock reached in terms of price during trading session

It is a digital tool coupled with the electronic editor and has a distinctive character that allows the identification of the person who signs and distinguishes his signature from others. It is used to conduct any process that requires proof of signatory’s identity. In addition, it is used in online financial, commercial and administrative transactions as well as in some e-government services such as e-signature on tax forms, banking transactions, online trading and others. It is a power of handwritten signature to provide data protection and inability to deny or falsify.

It  is a type of finance in which a business would sell its accounts receivable (invoices) to a third party to meet its short-term liquidity needs. Under the transaction between both parties, the factor would pay the amount due on the invoices minus its commission or fees.

Certain actions taken by securities companies represent abuses and violations of the legislations governing Capital Market.

These include:

  • Brokerage Company recommends an investment that doesn’t align with your investment goals, risk tolerance, or financial situation
  • Brokerage Company deals on your account by selling or buying without your knowledge.
  • Brokerage Company executing transactions that do not match your orders.
  • Brokerage Company refrains from executing your orders without giving any real reasons or motives causing you financial losses.
  • Brokerage Company hides crucial details of an investment, hindering your ability to make informed decisions and potentially leading to financial losses.
  • Brokerage Company includes charges for fees or commissions not stated in your contract, even though they have no legal justification to do so.
  • Brokerage Company promises guaranteed protection from losses in the market.
  • Brokerage Company provides financing options for clients to buy securities outside of margin trading
  • Brokerage Company unduly distinguishes one of its clients from the rest of the clients, thereby incurring losses.
  • The broker does not pay the utmost care to secure the best possible outcomes for your investments, potentially leading to financial losses.
  • Trading on insider information
  • Using manipulative schemes to affect stock prices during buying or selling

Under Articles 215, 216, 217, 218, and 221 of the Constitution of the Arab Republic of Egypt, FRA is among four independent body by virtue of the constitution, namely; the Administrative Control Authority, the Central Bank, and the Central Auditing Organization.

The constitution also guarantees the FRA the public legal personality, impartiality, and independence in all financial, administrative and technical aspects, to ensure that it carries out its duties in controlling and regulating non-banking financial markets and instruments, namely: Capital Markets, Future Exchanges, Insurance, Mortgage Finance, Financial Leasing, Factoring and Securitization, microfinance and movable guarantees.  The constitution describes FRA as an independent regulatory Authority to distinguish it from other public Authorities

The Financial Regulatory Authority (FRA) is established in accordance to law  no.10 of 2009 to be responsible for supervising and regulating non-banking financial markets. This include but not limited to Capital Markets, Future Exchanges, Insurance, Mortgage Finance, Financial Leasing, Factoring and Securitization. Additionally, FRA regulate and supervise micro-finance activity. Upon the issuance of Law no.141 of 2014. Moreover, according to Law No. 115 of 2015 on regulating movable guarantees, FRA is administrative authority competent to implement the provisions of this Law.

 

The Board of Directors of the Financial Regulatory Authority is established pursuant to Article VIII of Presidential Decree No. 193 of 2009 promulgating the Statute of the Financial  Regulatory Authority under the chairmanship of its Chairman and membership of each of the following:

  • Vice-Chairpersons
  • Deputy Governor of the Central Bank of Egypt selected by the CBE Governor
  • Five experts’ members in economics, financial and legal fields nominated by Minister of Investment.

In accordance with Article IX of FRA Statute, the Board of Directors is the supreme authority that dominates its affairs, formulates and implements the policies necessary to achieve its objectives and goals. In this respect,  FRA’s board may take  final decisions as it deems necessary to exercise the Authority’s competencies without the need for their adoption by any administrative entity.

In accordance with article 12 of the Executive Regulations,  Board of Directors shall meet at least twice a month.

Pursuant to Article 4 of  the Presidential Decree  No. 193 of 2009 issuing the Statute of the Financial Regulatory Authority , including general framework for FRA, in particular the following:

 

  • Licensing non-banking financial activities.
  • Inspecting Non-Banking Financial Institutions
  • Supervising the provision and dissemination of information related to non-banking financial markets.
  • Supervising markets to Ensure competitions and transparency in Non-Banking Financial Sector
  • Protecting customers’ rights and achieving balance in non-banking financial markets.
  • Taking the necessary measures to limit manipulation and fraud in non-banking financial markets, taking into account the commercial risks involved in dealing with them.
  • Supervising the training of those operating in non-banking financial markets and raising their efficiency.
  • Cooperating and coordinating with other non-banking financial regulatory bodies abroad in order to develop its regulatory means and systems and enhance its efficiency and judgement.
  • Communication, cooperation and coordination with associations and organizations that organize the work of financial oversight bodies in the world, hence, raising the authority’s efficiency and competencies in accordance with international best practices.
  • Disseminating  financial literacy and investment awareness

 

  • Vehicles (cars, motorcycles, spare parts)
  • Home furniture and furnishings
  • Clothing, shoes, watches, jewelry, and eyewear
  • Beauty products and toiletries
  • Electronics, gadgets, and sportswear
  • Appliances and other durable household goods
  • Combined purchases from multiple stores or chains (single invoice financing)
  • Children’s items like toys, books, stationery, and food

 

  • Consumer finance excludes real estate, financial leasing, factoring , microfinance and purchase property from a real estate developers
  • Clients have the right to know exactly what they’ll be charged, including interest rates and any fees, before they agree to a loan or financial product
  • Finance Companies shall avoid charging customers more due to internal inefficiencies or errors.  Companies need to find a way to offer fair prices while reaching larger number of clients.
  • Finance Companies should only offer loans that customers can realistically repay
  • Finance Companies must prioritize treating clients with fairness and respect
  • Finance Companies should create opportunities for customers to share their thoughts on offered products and services . Additionally, a clear and accessible complaint process should be available to address any issues efficiently.
  • Finance Companies shall keep client’s personal information confidential and never share them without client’s explicit permission.
  • Clients have the right to receive a clear and easy-to-understand copy of their financing agreement

Dear investor upon taking your decision to start investing in securities, you need to follow some procedures that put your decision into practice. Therefore, you need to be well aware of the nature of the institutions that act as financial broker and the basic principles of stock trading

  • Brokerage Companies

Investor in the Stock Exchange must ensure that the brokerage company is licensed by the Financial Regulatory Authority which protects him from manipulation of some companies that rely on improper practices. Brokerage companies shall provide data and information about listed companies if they have a licensed research unit which helps the investor to make a wise investment decision.

  • Second: Portfolio Management Companies

You can choose one of the licensed Portfolio Management Companies if you do not have enough time to follow up on your investments or when you lack the knowledge or experience to make investment decisions.

  • Mutual Funds

Mutual funds are established through banks or insurance companies after FRA’s approval. One of the specialized investment fund management companies licensed by the Authority shall manage these funds. Small investors, especially those who lack knowledge and experience in stock market often turn to investment funds.

Consider spreading your risk.

Some may advise you to concentrate your investments in a single security with a continuous high market price to maximize market profit.  Dear investor you should know that listening to such advices might cause serious losses. Therefore, spreading your investments around (diversification) is a safer way.

Every project with an annual business volume of 50 million EGP and not exceeding 200 million EGP, or every newly established industrial project which has paid-up capital or invested capital according to conditions of 50 million EGP and does not exceed 15 million EGP, or every newly non-industrial project incorporation paid-up capital or the invested capital of which, according to the circumstances, is 3 million EGP and does not exceed 5 million EGP.

Each project which has an annual business volume of less than one million EGP or every newly established project whose paid-up capital or invested capital is less than 50 thousand EGP.

There are some misconceptions about the Stock Market and some wrong practices done by brokerage companies. These issues may lead to confusion, ambiguity, inconsistency of information and huge problems that even hinder the smooth functioning of Capital Market.

  • Licensed NGOs and Civil Associations

 

  • Financial Institutions: This category includes Egyptian joint-stock companies that are licensed by FRA to provide MSMEs financing in accordance with the regulations outlined in Law No. 141 of 2014 and its amendments.

 

  • Associations and NGOs can also participate in MSME financing, but they must operate under Law No. 84 of 2002, as amended by Law No. 149 of 2019 on regulating civil work. These associations must be licensed to practice the activity in accordance with Law No. 141 of 2014 and its amendments

Law No. 141 of 2014 was promulgated and amended by Law No. 201 of 2020 to regulate MSME Finance  in the non-banking financial sector

This refers to a business that is in its early stages of development . A business that is launched , registered and engaged in the activity within two years

Do not believe this saying. The most reliable way to make money in the Stock Market is through careful and thoughtful investing. So, study the market and invest wisely. On the contrary, listening to and exploiting insider information, even if it is true, and listening to rumors ultimately leads you to speculation that may lead to huge losses.

  • Create a well-regulated environment for MSME Finance through focusing on three key objectives: Protecting All Parties Involved, Promoting Transparency and Efficiency, Mitigating Risks.
  • Elevate professionalism within MSME Finance. This involves establishing high standards that align with international best practices
  • Create a more vibrant and competitive MSME finance market, which can ultimately benefit small businesses by offering them more financing options.
  • Bridge the gap between the financial needs of MSMEs and the available financing options through promoting a wider variety of financial products and services.
  • Emphasizes fair and responsible lending practices to protect borrowers through focusing on Transparent Pricing and Conditions, Responsible Lending and Proper Use of Funds

An independent oversight body specifically dedicated to micro, small, and medium enterprise (MSME) financing. This unit, established by FRA, operates autonomously to supervise the activities of private associations and institutions that provide financing to MSMEs. A Board of Trustees composed of representatives from relevant government ministries and organizations governs the Unit.

The following outlines the regulations set forth by the Financial Regulatory Authority (FRA) for NGOs and associations engaging in MSMEs financing , including advertising regulations for MSME financing services.

To comply with regulations, MSME financing providers must ensure all information advertised is comprehensive. This includes information delivered through audio, visual media, written materials, electronic communications, or any other means.

The regulations also establish guidelines for managing customer inquiries and credit checks.

MSME financing providers shall take into account “concept of solidarity groups” when making funding decisions and applying approved policies.

Upholding data privacy is another key principle for MSME financing providers. They are legally obligated to comply with all applicable laws and regulations regarding customer data privacy.

Each project has an annual business volume of one million EGP and less than 50 million EGP, or every newly established industrial project with paid-up capital or invested capital between 50,000 EGP and less than 5 million EGP, Or every newly established non-industrial project with paid-up capital or invested capital, between 50 thousand EGP and less than 3 million EGP.

Stock Market makes you the owner of part of the company in which you buy shares and you have all the rights and obligations of the owner towards the company. The main purpose of trading in the Exchange is to invest your savings for future to achieve your life goals.

If you decide to limit your transactions to buying and selling quickly in the hope of achieving quick gains, then, this is speculation and you may experience significant losses, especially if you are a small investor who is not familiar with investing in the Exchange, its nature and risk.

So, do not fall prey to those who convince you that speculation is the only way to gain, but wise and sound long-term investment has a clear impact and benefits and helps you realize your dreams and those of your family. Just make sure you follow the wise investment steps.

This concept is wrong because anyone with some savings can invest in the Stock Market. So, if you are comfortable researching and managing your investments, you can open an account with a brokerage firm. They will provide you with info and tools to make informed decisions.  However, if you are a beginner and have no time to follow upon on your investments, you can consider mutual funds managed by licensed investment manager. If you have significant assets, you can consider portfolio management companies which invests on your behalf.

Dear Investor: There are number of steps you should follow to maximize your returns and minimize risk.

You must know that understanding these steps and procedures is crucial before you start taking your investment decision, as it will set the foundation for your investment journey

Investment success often stems from a combination of sharp market analysis and meticulous stock selection.

  • Avoid companies not licensed by the Authority for this activity. For a list of licensed companies , visit the Authority’s website or call their customer service line
  • Make sure you fully understand everything about the  provided product or service, including terms and conditions, payment options, rescheduling conditions , privacy and confidentiality , all costs related to the product or service e.g.  interest rate /cost of funds , application fees, release  fee, other administrative costs
  • Provide only credible and verifiable data to maintain trust
  • Take your time to read every term of the contract thoroughly. Make sure you fully grasp what’s being agreed upon and that there is no room for misinterpretations. Most importantly, be confident you can meet all the requirements before committing
  • Clients have the right to get clarifications on any item or term in the contract or any other document provided by the company. Finance company is there to answer your questions and ensure you understand the terms fully before signing
  • Ask for a copy of the contract and any other documents you sign before finalizing anything.
  • All parties involved in the contract are legally bound to fulfill their agreed-upon responsibilities
  • Do not sign blank pages or security receipts for financing
  • Avoid signing any forms that allow the company to freely use your personal and financial data
  • Ask about any potential fees you might incur by opening an account or using their services.
  • Don’t forget to ask for a receipt whenever you make a payment to the financial institution
  • Check if the product or service matches the features and details you agreed upon in the contract
  • You have to use the product or service following the guidelines laid out in the contract with the financial institution
  • Follow the payment schedule outlined for your premiums to avoid any late fees
  • As soon as your service period ends or you make an early payment, make sure to get your documents and guarantees from the company right away
  • Make sure the person you’re dealing with is a legitimate employee of the financial institution before disclosing any personal or account information
  • For any disputes with the company, utilize the designated channels for addressing concerns and finding a solution.
  • Start by trying to resolve the issue directly with the company’s Complaints Department. If you’re unhappy with their response, you can then escalate your complaint to the Authority’s Complaints Department for further assistance
  • Clients are not allowed to deal with non-licensed companies. A list of licensed companies is available on the Authority’s website or by contacting customer service
  • Before taking a decision, it’s crucial to thoroughly understand all aspects of the product or service. This includes details like terms and conditions, payment options, rescheduling terms, data privacy, related costs e.g. interest rates, finance charges, application fees, release fees , and any other administrative expenses the company or financial institution may charge
  • Verify that all necessary information is complete and trustworthy.
  • Take time to thoroughly review all the contract terms. Make sure you fully grasp the meaning of each provision and that terms of the contract are unambiguous and you have the ability to comply with it
  • Clients have the right to ask any questions if aspect of the financing agreement or associated documents seems unclear. The company shall provide clear responses in this respect
  • Clients have the right to receive a copy of any contract or document  they sign
  • All parties to the contract shall abide by the agreed-upon terms.
  • Beware of signing blank documents or security receipts – they may not guarantee funding.
  • Don’t sign anything that gives the company or financial institution  the right to share your personal or financial information without your permission
  • Ensure you are fully informed of all costs associated with dealing with a financial institution
  • Upon settlement of any financial obligation to the institution, ensure you receive a formal receipt.
  • Clients have the right to receive a product or service that meets the agreed-upon specifications as outlined in the contract
  • Use the product or service according to the rules outlined in your contract with the financial institution.
  • Pay your premiums on time as per the agreed-upon schedule
  • Once your service ends or you make a full payment (whichever comes first), get your documents and guarantees back from the company right away.
  • Make sure the person you’re dealing with is a legitimate employee of the financial institution before disclosing any personal or account information
  • For any disputes with the company, utilize the designated channels for addressing concerns and finding a solution.
  • Start by trying to resolve the issue directly with the company’s Complaints Department. If you’re unhappy with their response, you can then escalate your complaint to the Authority’s Complaints Department for further assistance
  • Before choosing an insurance company or one of its branches , make sure it is licensed by the Financial Regulatory Authority to engage in the activity .You can easily verify if it is authorized to operate in Egypt by checking listed companies at FRA’s  website (www.fra.gov.eg)
  • Before dealing with an insurance broker, ensure they’re properly licensed. Ask to see their “license ,” which is issued by FRA authorizing him to operate as a broker in Egypt.
  • Before taking any decision , take some time to explore insurance products and services available at the Egyptian insurance market, browse company’s website and verify all the company’s basic information and data.
  • Provide accurate and truthful information about yourself and the things you’re insuring is crucial , thus avoiding  the invalidity of the policy and the loss of your right in the future.
  • Never sign a blank or incomplete form required for insurance policy to guarantee your rights in the future.
  • Read the insurance policy thoroughly and accurately  and understand the insurance coverage and policy’s conditions and terms. Also, ensure that the terms regarding loss of rights, cancellation, liquidation, and exceptions are thoroughly reviewed before signing insurance contracts.
  • It’s crucial to take some time to thoroughly review you’re your insurance policy after issuance  and ensure all the information is accurate, this includes personal data , start and end dates of your insurance coverage, policy’s conditions and description of insured items.
  • Knowing what to do after an insured event is crucial to getting the compensation you deserve.
  • In addition , avoid issuing a general power of attorney for insurance matters to someone you don’t know well.

–   Avoid brokerage companies that lack qualified staff

–   Do not rely on technical and financial studies that adopt rumors and incorrect trends.

–   Do not make an investment decision that does not fit your investment objectives.

–   Do not follow a brokerage company that resorts to pressure you to carry out operations to bring benefit to the company regardless of your benefit.

–   Don’t engage with firms asking you to violate Capital Market Regulations.

–   Carefully consider all options before selecting a Brokerage Company or Portfolio Management Company

–   Explore all avenues for growing your investment.

–   The market dictates gains and losses, regardless of your broker’s expertise.

–    Diversifying your investments reduces investment risk.

–    Don’t forget to schedule a monthly review of your brokerage account statements to monitor your balance and track all your investment activity.

  • Companies shall clearly explain all transaction costs to clients before they proceed.
  • Companies shall provide receipts to the clients that indicate reimbursement for the costs associated with the transaction.
  • Companies shall set up a system to address clients’ complaints, keeping track of what actions were taken. 
  • Clearly explain to the clients complaints’ process and display it prominently at company’s headquarters and branches
  • Companies shall provide a written and approved guide that explains the rules and steps set for performing their licensed activity and this guide shall be regularly updated.
  • Executive Regulations governing the activity must be comprehensive and encompass all mandatory items as outlined in the relevant legislations and decisions.
  • The institution shall establish its own internal rules for how the activity will be conducted and these rules shall be always  updated
  • Companies shall abide by FRA’s Board decisions Clarifying the needed guarantees from clients
  • Safely storing and keeping client’s guarantees to prevent loss or misuse.
  • The company shall return all submitted guarantees to the client or guarantor immediately after the contract ends or the client’s balance is paid, whichever comes first
  • Licensed non-bank financial institutions shall adhere to all regulations set forth by the Authority governing their licensed activities
  • Non-bank financial institutions shall comply with office correspondence forms and contracts issued by the Authority pursuant to the governing Laws and  FRA’s Board decisions
  • Non-bank Financial institutions shall regularly review and update their document forms in light of the rules and  regulation governing their activities
  •  Non-bank Financial institutions shall regularly review and update their internal regulations pursuant to the  Laws governing their activities
  • Contract terms should comply with the Authority’s guidelines, where provided.
  • Contract terms should be clear and free from any potential misinterpretations.
  • Companies shall provide their clients with a copy of their contracts or a complete breakdown of the service’s terms.
  • Companies shall abide by the terms and service costs established in contracts. No unilateral changes shall be made.
  • Clients are entitled to a payment plan for their remaining installments, ensuring compliance with all legal collection timelines.
  • Activating Know Your Customer (KYC) procedures and enforcing all necessary measures to prevent money laundering and terrorist financing.
  • Fulfilling all mandatory information on the application forms
  • Verifying that the client  isn’t on any sanctions or terrorist entity lists
  • Verifying and identifying  the Ultimate Beneficial Owners (UBOs)
  • Verifying the intended purpose of the funds and confirming it’s alignment with approved and licensed activities.
  • As required by the Law and the Authority’s regulations, all necessary documents, along with any signed documents from the client, must be kept on file for each client.
  • Utilize a secure storage solution to ensure the safety of your customers’ files
  • Design a clear brochure that simplifies the most important terms included in the insurance policy and approved by the Authority
  • Schedule a call with your client, answer his inquiries and explain policy’s terms and conditions , exceptions and clarify liquidation requirements
  • Company’s representative shall not sign on the behalf of the client. Client is responsible for providing the accurate data about himself, desired coverage amount, and the payment details.
  • Schedule a brief phone call to review the details  provided by  your client before issuing the insurance policy
  • Verify that the correct amount is being withdrawn from the policyholder’s account and ascertain the amount of the premium in case of direct premiums debit
  • Due to recent currency swings, please inform your client that he is free to freeze the current exchange rate before floating on the date of issuance or to pay the entire premium in EGP and adjust the premium to match the exchange rate after floating.
  • Make sure that you send an annual report to your client summarizing installment history and investment account performance to reach the desired financial goals.
  • Schedule call with your client to ensure that he fully understands terms of the insurance      Also, clarify the  “ liquidation item”  and discuss the cancellation fee if he decides to terminate the policy before its expiry .
  • A medical examination is a required step for issuing a life insurance policy.
  • update your client’s profile periodically on the platform.
  • Explain why an insurance application might not be approved.
  • Conduct thorough inspections of the insured property. This inspection is carried out by Damage Assessment Expert registered at FRA’s registry before issuing the insurance policy. Recommendations and observations included in the inspection report shall be taken into account.
  • Ensure that new clients receive the basic data form which includes a clear and concise information outlining insurance products and services provided by the company.
  • Company shall notify the client of any amendments to the insurance policies with a confirmation that he receives and understands the updates for future reference.
  • clarifies the procedures the client must follow in the unfortunate event of an insured incident.
  • To secure your insurance rights in the future, it is important to provide clear and concise information about your health when signing life insurance statements, as well as when receiving verification calls from the company.
  • Ensure that you comprehend the insurance policy’s terms and conditions thoroughly, particularly the terms of cancellation and liquidation, and respond promptly to company inquiries about any unclear or known items.
  • When a bank member offers you an insurance product, be mindful that you will be given an insurance policy that has all the terms and exceptions of an insurance policy, which may be associated with an investment decision, and that it is not a bank product.
  • In order to fully understand your insurance policy , it’s crucial to get all the details on participating and investment-linked policies.
  • Make sure to obtain copies of the insurance policy after their signing, certification, and approval by the company and keep them in a safe place.
  • To ensure your right to compensation in the event of an accident, make sure to notify the insurance company before making any substantive changes to the insurance policy.
  • In order to retain your rights , you must notify the insurance company and obtain their consent before transferring ownership of your insured property .
  • In the event of an incident, take these two crucial steps: file a police report and notify your insurance company within 72 hours.
  • Allow the insurance company to inspect the damaged property before you begin any repairs.
  • After you report the incident, request the insurance company to send an inspector to assess the damage.
  • There’s a financial decision to make about the debris. Keeping it reduces your compensation, while submitting it to the insurance company could affect your compensation positively.
  • If your car insurance policy is for personal use only, be cautious about using it for commercial activities , this could void your coverage in case of an accident.
  • To ensure your claim is approved, be truthful about the actual repair costs or replacement value of the damaged item.
  • Maintain all documents that show how the damaged or lost insured item was resolved, whether through repair or replacement.
  • To ensure a smooth claims process, keep detailed records (electronic or paper) of the amount and value of your insured inventory, as outlined in your fire insurance policy to fairly calculate your compensation.
  • Familiarize yourself with the process for filing a complaint to the Financial Regulatory Authority if you’re ever dissatisfied with the service you receive from your insurance company.
  • Keep the damaged property and ask the insurance company to perform the inspection
  • Ensure that inspection has been performed for the property you’re insuring (factory, car, goods, etc.). Then, carefully examine the inspection report prepared by the insurance company’s inspectors.
  • When choosing insurance, carefully assess the risks you want to be covered for today, but also consider potential future risks, particularly those related to climate changes.
  • Before finalizing your policy, verify that the insurance company offers the specific coverage you need for the risks you want to be insured against.
  • Ensure your insurance policy reflects the true market value of your insured items to be able to get the right coverage amount upon compensation. This prevents the insurance company from applying the “average clause” which could reduce your compensation in the event of a claim.
  • Take the time to thoroughly read and understand every aspect of your insurance policy. This includes the covered and excluded losses, termination clause and anything else that seems unclear. Don’t hesitate to ask the company to clarify anything you don’t fully grasp
  • Check Coverage Limits and Deductibles. Make sure you know the most your insurance company will pay for each covered item  and the deductible amount you’ll pay before signing the contract.
  • Make sure your insurance policy include an arbitration clause to settle any future disagreements you might have with the insurance company.
  • To ensure your right to compensation in the event of an accident, make sure to notify the insurance company before making any substantive changes to the insurance policy.
  • In order to retain your rights , you must notify the insurance company and obtain their consent before transferring ownership of your insured property .
  • In the event of an incident, take these two crucial steps: file a police report and notify your insurance company within 72 hours.
  • Allow the insurance company to inspect the damaged property before you begin any repairs.
  • After you report the incident, request the insurance company to send an inspector to assess the damage.
  • There’s a financial decision to make about the debris. Keeping it reduces your compensation, while submitting it to the insurance company could affect your compensation positively.
  • If your car insurance policy is for personal use only, be cautious about using it for commercial activities , this could void your coverage in case of an accident.
  • To ensure your claim is approved, be truthful about the actual repair costs or replacement value of the damaged item.
  • Maintain all documents that show how the damaged or lost insured item was resolved, whether through repair or replacement.
  • To ensure a smooth claims process, keep detailed records (electronic or paper) of the amount and value of your insured inventory, as outlined in your fire insurance policy to fairly calculate your compensation.
  • Familiarize yourself with the process for filing a complaint to the Financial Regulatory Authority if you’re ever dissatisfied with the service you receive from your insurance company.
  • Keep the damaged property and ask the insurance company to perform the inspection
  • Ensure that inspection has been performed for the property you’re insuring (factory, car, goods, etc.). Then, carefully examine the inspection report prepared by the insurance company’s inspectors.
  • When choosing insurance, carefully assess the risks you want to be covered for today, but also consider potential future risks, particularly those related to climate changes.
  • Before finalizing your policy, verify that the insurance company offers the specific coverage you need for the risks you want to be insured against.
  • Ensure your insurance policy reflects the true market value of your insured items to be able to get the right coverage amount upon compensation. This prevents the insurance company from applying the “average clause” which could reduce your compensation in the event of a claim.
  • Take the time to thoroughly read and understand every aspect of your insurance policy. This includes the covered and excluded losses, termination clause and anything else that seems unclear. Don’t hesitate to ask the company to clarify anything you don’t fully grasp
  • Check Coverage Limits and Deductibles. Make sure you know the most your insurance company will pay for each covered item  and the deductible amount you’ll pay before signing the contract.
  • Make sure your insurance policy include an arbitration clause to settle any future disagreements you might have with the insurance company.

If you have a complaint against a brokerage company or one of its employees, you must submit a written complaint to the Financial Regulatory Authority (FRA) or register it on complaint’s form issued on FRA’s website for this purpose. One of FRA’s employees operating in Complaints and Grievances Department shall review and study your complaint.

Companies licensed to offer consumer finance, which includes extending credit via commercial payment cards or any other payment method approved by the CBE, in connection with a contractual arrangement with a network of suppliers of goods or providers of services. By contrast, “Consumer Finance Providers” are companies that are themselves producers or distributors of goods or services and which perform consumer finance activities to facilitate providing such supplies to consumers.

The maximum amount of financing a micro-finance project can get is EGP 200,000 per project

FRA’s Board of Directors can raise this limit by up to 10% each year, depending on the economic conditions .

However, there is generally no pre-set maximum loan amount for SMEs. The financing offered is based on the specific needs of the project and a thorough assessment of the business’s creditworthiness.

Refers to providing finance to purchase goods or services, clients can’t afford. These loans are repaid over a set period, usually at least six month. This includes financing options like credit cards and other Central Bank-approved payment methods.

MSMEs Finance refers to providing financial resources to MSMEs for commercial activities. This includes production, operations, and growth initiatives, as outlined in Law No. 152 of 2020 promulgating MSMEs Development Law.

 MSMEs Finance is a main tool to attract more people from low-income backgrounds and those without a lot of financial resources involved in the economy.

 When micro and small business owners have access to loans and other financial tools, it creates a ripple effect. It helps reduce unemployment, boosts low-income families, and overall, leads to more investment and job opportunities within the national economy.

FRA is responsible for regulating consumer finance activities, as outlined in Consumer Finance Regulation Act No. 18 of 2020.

  • تحقق من معاينة الشيء موضوع التأمين (مصنع-سيارة-بضاعة — إلخ) واطلع على تقرير المعاينة المعد من جانب معايني الشركة أو أحد خبراء المعاينة.
  • حدد المخاطر التي ترغب في التأمين ضدها بدقة وضع في اعتبارك المخاطر المستقبلية خاصة مخاطر التغيرات المناخية.
  • تأكد من التغطيات التأمينية المتاحة بشركات التأمين وأنها تناسب حجم المخاطر التي تريد تغطيتها.
  • تأكد من أنك تؤمن بكامل القيمة أي أن مبلغ التأمين يعادل القيمة السوقية للشيء المؤمن عليه حتى لا تتأثر التعويضات المنصرفة لك حال وقوع حادث (تجنب تطبيق شرط النسبية).
  • تأكد من اطلاعك على شروط وأحكام وثيقة التأمين بدقة وعناية بما في ذلك الخسائر المغطاة والمستثناة في الوثيقة وشروط الفسخ مع الاستفسار من الشركة على أي بند قد يكون غير واضح أو معلوم لك.
  • أحرص على معرفة نسب التحمل بوثيقة التأمين لكل بند من بنود التغطية التأمينية إن وجد.
  • تأكد من أن تتضمن الوثيقة شرط جواز اللجوء للتحكيم لفض أي نزاع قد ينشأ بين الأطراف.

 

Last modified: April 7, 2024

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