الهيئة العامة للرقابة المالية

• Compliance is mandatory for all firms with an issued and paid-in capital of EGP 50 million or more.
• Annual insurance is now a prerequisite for license issuance and renewal.
• Minimum coverage must equal 5% of average annual revenue from the last three fiscal years.
• Entities have 6 months to comply from the date of publication in the Official Egyptian Gazette.

Financial Regulatory Authority (FRA) has issued a mandate requiring Non-Banking Financial Institutions (NBFIs) with a minimum issued and paid-in capital of EGP 50 million to maintain annual Directors and Officers (D&O) liability insurance. This coverage is now a prerequisite for license continuity.

The resolution, finalized during a Board of Directors meeting chaired by Dr. Mohamed Farid on January 28, 2026, aims to strengthen corporate governance and risk management frameworks. Furthermore, it seeks to attract high-caliber talent to board and senior positions within entities under FRA’s supervision.

Article (1) of Resolution No. 35 of 2026 stipulates that an insurance provider licensed in Egypt must issue the policy. The liability limits must be proportionate to the company’s scale of operations and risk profile, with a minimum threshold of 5% of the average annual revenue over the preceding three fiscal years. Companies are required to renew this coverage annually.

The resolution further mandates that companies provide immediate disclosure to FRA regarding any amendments, cancellations, or modifications made to the policy during its period of validity.

Under Article (2), active companies are mandated to regularize their legal status in accordance with these provisions. Proof of insurance coverage must be filed with the Authority within a six-month compliance window, commencing from the date of the resolution’s publication in the Official Gazette and on FRA’s website.

This resolution aligns with FRA’s strategy to instill sound governance standards and enhance risk management tools within the NBFI sector. These measures are designed to elevate institutional discipline and safeguard the rights of both clients and investors.

The resolution reflects the Authority’s commitment to reinforce the professional accountability of boards and executives. By providing an insurance umbrella that matches modern risk profiles, FRA aims to bolster overall confidence in the non-banking financial sector.

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