الهيئة العامة للرقابة المالية

Subordinate Sharia Supervisory Committee Register

Subordinate Sharia Supervisory Committees refer to Sharia committees whose members are approved by the General Assembly of shareholders of companies operating in non-bank financial activities that seek to conduct their business in accordance with the principles of Islamic Sharia, for a term of three years, renewable. The Central Sharia Supervisory Committee must be notified of such appointments.

Subordinate Sharia Supervisory Committees for sukuk issuances or Sharia-compliant non-bank financial products shall consist of no fewer than three and no more than five members, the majority of whom must be specialists in Islamic jurisprudence “Fiqh” and financial transactions, with preference given to those who also possess knowledge of economics, accounting, and law.

Committee members must be registered with the Financial Regulatory Authority (FRA) in the Register of Members of Sharia Supervisory Committees. Applicants seeking registration in the FRA’s register of members of subordinate Sharia Supervisory Committees must satisfy the following requirements:

• Hold a doctoral degree “Al-‘Alimiyyah” (PhD) from Al-Azhar University or an equivalent degree in a relevant field of specialization.
• Have at least two specialized academic studies published in a recognized scientific journal in fields related to financial, accounting, or economic transactions compliant with Islamic Sharia.
• Not have been previously convicted of a felony or misdemeanor involving dishonor or breach of trust, or any offense stipulated under the Companies Law, Commercial Law, or the laws referred to in Article (3) of the Law Regulating the Supervision of Non-Bank Financial Markets and Instruments, unless rehabilitation has been legally granted.

An exception to the first and second conditions above may be granted if the applicant meets any of the following criteria:

• Having served as the Grand Mufti of the Arab Republic of Egypt.
• Being nominated by His Eminence the Grand Imam of Al-Azhar.
• Providing evidence of having served as a member of a similar Sharia Supervisory Committee in banks, financial institutions, or investment funds for a period of at least three previous years.

Registration in the FRA’s register shall be valid for three years, renewable upon submission of a written request by the applicant and subject to fulfill the continuing registration requirements established by the Authority.

A service fee of EGP 3,000 shall be payable for registration or renewal, to be paid upon submission of the renewal request.

Subordinate Sharia Supervisory Committees within institutions operating in non-bank financial activities review and assess all relevant documents, memoranda, prospectuses, information memoranda, contracts, and investment instruments described as Sharia-compliant, as well as any other documents necessary for the conduct of the institution’s activities.

These materials are examined thoroughly from all Sharia compliance perspectives. The committee may approve the submitted materials as presented, after verifying compliance with Sharia standards, or require certain necessary amendments; or reject the submission where approval or amendment is not feasible.