الهيئة العامة للرقابة المالية

Dr. Mohamed Farid – FRA Chairman:

• The electronic linkage enhances real-time supervision. FRA establishes a regulatory system that relies on data and analysis.
• The Authority set a six-month deadline for companies to achieve full compliance with the new requirements.
• FRA is implementing a plan to provide investors with real-time access to mutual fund unit prices via its “I Invest” electronic platform.

FRA Board of Directors chaired by Dr. Mohamed Farid issued resolution no. 236 of 2025 which represents a significant step in FRA’s digital transformation strategy aimed at enhancing transparency and investor protection in the Egyptian Capital Market.

 This resolution requires all Fund Management companies to establish the necessary technological infrastructure and security systems to electronically link and integrate their databases with the Authority’s system. Specifically, these companies are obligated to provide FRA with the fund’s data, the nominal value of the unit and a daily statement detailing the number of outstanding units for each investment fund.

Dr. Farid asserted that this move fundamentally constitutes a “qualitative shift” in regulating and supervising mutual funds. It grants FRA the capability to rely on live, instantly updated digital data to monitor investments and capital flow precisely, thereby enabling proactive and real-time detection of any non-compliant or irregular market activity.

Fund Management Companies are the entities tasked with overseeing the administrative and technical aspects of mutual funds, including critical functions like registering unit holders, calculating the Net Asset Value (NAV) per unit and producing periodic reports.

FRA’s mandate aims to empower the Authority to monitor fund data in real-time. This capability directly ensures operational safety, accurate disclosures and robust investor protection.

Dr. Mohamed Farid affirmed that this measure is a fundamental pillar of the Authority’s digital transformation and electronic governance strategy. The ultimate objective is to construct an integrated regulatory framework that leverages technology and data analytics. Ultimately, enhancing the efficiency of non-banking financial markets and boost confidence among both domestic and international investors in the Egyptian economy.

FRA Chairman explained that this development constitutes a qualitative transformation in the Authority’s role, moving it beyond traditional reactive monitoring (after events occur) toward proactive analysis and preemptive response.

The Authority has mandated that Fund Management Companies must prepare and submit specific reports daily to enhance regulatory oversight. These reports include a daily statement detailing the Net Asset Value (NAV) per unit based on the latest update, as well as a daily statement reflecting the Net Asset Value of the total assets for each fund. Additionally, companies must provide a statement documenting any profit distributions made by the fund, clearly specifying whether these were paid in cash or issued in the form of bonus units.

In accordance with the new resolution, Fund Management Companies are legally obligated to prepare and submit specific data for the fund’s unit holders. This mandatory data includes comprehensive personal and legal identifiers, such as the subscriber’s full name (four parts), gender, nationality and address. For individuals, the National ID number is required, while legal entities must provide their Commercial Registry number or Establishment Deed. Critically, the resolution places a strong emphasis on the confidentiality of this sensitive information and explicitly requires companies to implement strict technical controls for data protection, information security and ensuring the absolute privacy of all dealing parties.

Additionally, FRA granted Fund Management Companies a six-month grace period, starting from November 5, 2025, to fully comply and reconcile their status, paving the way for achieving an advanced level of digital supervision and real-time data. FRA’s resolution provides investors with the opportunity to monitor the prices of investment fund units instantly through the Authority’s “I Invest” electronic platform, following the completion of the electronic linkage operations.

In accordance with the regulations governing the work of Fund Management Companies, open-ended and real estate investment funds are required to contract with an Management Company licensed by the Authority. The regulations stipulate that the minimum required capital for a Fund Management Company is EGP 2 million, with at least 50% of this amount payable upon establishment. Furthermore, the company must possess the necessary technical specifications and professional experience to carry out its mandated activities.

There are approximately four companies operating in Fund Management Services: Catalyst, Fund Data, Prime and Egyptian Management Services.

This new resolution is part of a comprehensive regulatory package by FRA aimed at developing the digital infrastructure of the non-banking financial services sector. The core goal is to achieve seamless integration across various financial activities under effective real-time supervision, thereby enhancing transparency, protecting market participants and building sustainable confidence in the Egyptian markets.

To accelerate this digital pace and strengthen real-time oversight, FRA has initiated several concurrent measures this year. These include mandating all non-banking financial entities, including insurance companies to strengthen their cybersecurity and technological infrastructure and to link their real-time and historical databases with the FRA’s platform.

Furthermore, FRA also mandated the Egyptian Federation for Consumer Finance (EFCF) to establish an electronic link with the Authority to provide all available data and information. This measure is taken within the framework of the Authority’s commitment to protect all stakeholders in the non-banking financial markets.

FRA’s Regulatory Sandbox has also formalized electronic data exchange through Memoranda of Understanding with key technology and finance players like e-Finance, Techni, GIG, Plug & Play Egypt and AUC Venture Lab.

The Authority has issued instructions mandating custodians to undertake two key operational changes: they must ensure their clients have verifiable bank accounts and are required to adopt modern technological methods, such as e-wallets and electronic transfers, for the purpose of disbursing profits and returns. This directive is designed to enhance both the financial security and transparency.