الهيئة العامة للرقابة المالية

• The Resolution approved by FRA Board on April 29 and published in the Official Gazette on May 20

Dr. Islam Azzam, FRA Chairman:
• New rules classify listed companies and individuals into three categories: Warning, Negative and Enforcement Action Lists.
• Prior notification and defense hearings are mandatory before inclusion on the Warning List … a formal, free-of-charge appeals process is available to all affected entities.

FRA Board of Directors chaired by Dr. Islam Azzam, has issued Resolution No. 87 of 2026 on establishing an integrated system to list and categorize natural and legal persons violating legislations governing the non-banking financial sector. The initiative aims to tighten market oversight, enhance transparency and safeguard investor interests. FRA Board originally ratified the Resolution during its session on April 29, and it was subsequently published in the Al-Waqai’ Al-Misriya (the Egyptian Official Gazette) on May 20, with enforcement officially taking effect on May 21, 2026.

The new Resolution mandates the creation of a centralized regulatory database within FRA to track non-compliant entities and individuals. Violators will be designated under three primary categories:
– The Warning List: Reserved for individuals or entities operating within FRA’s jurisdiction without a proper license.
– The Negative List: Tracks individuals or entities facing final, non-appealable judicial rulings for violations of sector-specific laws.
– The Administrative Enforcement List: Features entities and individuals who have had their operational licenses revoked or their names struck from FRA’s official registries.
The Resolution stipulates that names will be added to these lists based on a comprehensive study prepared by FRA. This report will be reviewed by the internal Committee for Case Assessment, Criminal Referrals and Settlements before final approval by FRA Chairman.

The Resolution also permits temporary provisional listing if an ongoing activity poses an immediate threat to market stability or client interests. In such cases, notification and right-of-defense hearing procedures must be completed within one week of the initial listing, and all lists will be publicly accessible via FRA’s official website or a dedicated digital platform.

Dr. Islam Azzam emphasized that this new system secures legal guarantees and protects the right of defense by mandating that affected parties be formally heard before being placed on the Warning List.

He added that the framework includes a formal appeals process. Listed parties, or those whose names remain on the list after rectifying a violation, have 60 days from the listing date to lodge a grievance with FRA Chairman. A specialized grievances committee – chaired by the FRA Vice Chairman and featuring legal experts with judicial backgrounds – will handle the reviews. The committee must rule on appeals within 30 days of receiving the necessary documentation before submitting its findings to FRA Chairman for final approval. The entire process is completely free of charge.

To ensure flexibility and fair enforcement, FRA will conduct regular reviews of the database to delist individuals and entities once their compliance issues are resolved. Names can be removed automatically or upon request by the affected parties, provided they demonstrate that the infraction has been rectified, judicial sentences have been completed, or a settlement has been finalized. This mechanism enhances the efficiency of the regulatory framework in safeguarding non-banking financial market stability.

Dr. Azzam concluded that this Resolution underscores FRA’s commitment to investor protection and market transparency. By making this data public, citizens will remain fully informed about the compliance status of companies, institutions, and individuals operating across FRA-regulated sectors, particularly in capital markets, insurance and various financing activities.

He stressed that such regulatory mechanisms strike a crucial balance by aggressively combatting legal infractions while firmly maintaining legal safeguards for all market participants, a level of robust oversight expected to deepen the market and bolster its attractiveness to institutional investments and cutting-edge financial innovations