الهيئة العامة للرقابة المالية

FRA Establishes Full Controls for Digital PE/VC Platforms – Thursday 2 October 2025

• The Authority aims to create a comprehensive legal framework for Digital PE/VC Platforms.
• Platforms must enforce mandatory registration conditions, requiring customers to pass a knowledge test officially approved by the Authority.
• Platforms must establish permanent communication channels between the investment funds and registered users to ensure all inquiries are promptly addressed.
• Platforms are obligated to provide a required set of disclosures to facilitate the investment process for both prospective and registered users.
• Each platform must feature a digital subscription request form and all parties involved are bound by specific rules governing the subscription process.
• The regulations establish a transparent and integrated regulatory framework for the redemption of investment units, designed to boost market confidence and protect investors’ interests.

FRA Board of Directors chaired by Dr. Mohamed Farid issues Resolution No. 194 of 2025 to set comprehensive controls for establishing digital PE/VC  platforms.

Private Equity Fund is essentially a closed, direct investment vehicle that deploys capital into both listed and unlisted securities. It is specifically permitted to engage in Venture Capital (VC) activity and its units are offered for subscription, with the possibility of listing on the stock exchange. Venture Capital activity itself is defined broadly, encompassing the financing, support, and development of high potential, high-risk projects. The goal of VC is to convert these projects, often suffering from financing shortfalls and characterized by a long investment cycle, into established shareholding or limited partnership companies.

This groundbreaking regulation is central to FRA’s strategy to build a comprehensive legal framework for digital platforms. The Authority began this process by regulating Digital Real Estate Platforms, establishing a secure, transparent and effective environment there first. Following this, the Authority proceeded to regularize the status of existing  Digital Real Estate Platforms, with the goal of allowing real estate project developers to present these projects to investors through FRA-licensed digital platforms.

The regulation strictly defines a Digital PE/VC Platforms as a technology-based business model for non-banking financial activities that must be approved by FRA. This platform must facilitate the subscription or redemption of Private Equity fund units (which may conduct Venture Capital activity) and display all necessary data for these transactions. To ensure transparency and data integrity, the platform is required to provide comprehensive disclosures for investors to monitor their holdings. Pricing must be announced periodically based on values calculated by FRA-licensed entities following approved valuation standards. Furthermore, all investment contracts and units are mandated to be electronically stored with Authority-licensed entities.

FRA requires licensed platforms to mandate specific conditions before registering prospective investors. Crucially, the platform must verify that the applicant has passed a knowledge test, which is prepared by the platform and approved by FRA. This test is administered only after the investor has reviewed educational and introductory materials provided on the platform about the investment tool and its associated risks.

Digital platforms must provide secure digital payment and collection channels that hold all necessary approvals. Operationally, the platform must open required accounts according to the Central Depository and Registry Company’s specified mechanism. Before any activity, the Investment Fund itself must be registered and licensed by the FRA. The platform must govern all subscriptions and redemptions using a brief information memorandum approved by FRA. This memorandum, which must be published on the platform, must specify the minimum acceptable threshold required for each individual subscription issuance to be considered successful. Furthermore, the platform is required to publish a summary of the feasibility study for the projects presented by each fund.

Additionally, Platforms must establish permanent communication channels between the investment funds and registered users to promptly address all inquiries and provide follow-up. This includes a commitment to respond quickly to any user inquiry upon receipt. For quality assurance, the platform must maintain a detailed register of all complaints and the results of their study, submitting a quarterly report on these outcomes to FRA. For technological compliance, all electronic programs, systems, application infrastructure and databases used by the platform must receive prior approval from FRA.

The platform is strictly obligated to provide comprehensive disclosures that investors must review before registering or invetsing. Initial disclosures must cover fundamental details such as platform registration conditions, Platform Manager data, complaint and dispute resolution mechanisms, operational risks and the fund recovery process if the subscription fails or the investor withdraws early. Beyond registration, the platform must maintain ongoing transparency, providing regular disclosures that allow investors to actively track their holdings. These include information on fund issuances, FRA-approved brief information memorandum, the fund’s annual and periodic financial statements and details of any scheduled installment payments.

The platform must disclose the minutes of the unit holders’ assembly meetings after FRA’s approval. It must also provide details on subsequent increases approved for the size of the issuance, the current issuance size, the number of outstanding units and the conditions for execution in the event of a default.

Additionally, a semi-annual report on the Net Asset Value (NAV) of the investment unit is mandatory. This valuation must be issued by the management services company, which must utilize an asset valuation expert registered with FRA. Crucially, the valuation must include a comparative disclosure of the unit’s NAV over two financial periods, clearly stating the reasons for any change, whether an increase or a decrease.

Furthermore, the platform must disclose a summary of the economic feasibility study prepared by the Investment Manager for each targeted project. If the funding is structured as a partnership, the platform must disclose the project’s valuation based on a report from an FRA-registered expert. For asset purchases, the purchase price and the justification must be revealed if the price exceeds the fair value.

The platform must disclose details on dividend distributions and due dates, any existing insurance policies on the investments and all critical legal incidents, such as judicial rulings, arbitration awards or expropriation decisions that could impact the investment or the legal status of the assets. Any unresolved violation of the investment policy must also be disclosed and updated weekly until resolved.

In addition, the platform is held to a high standard of ongoing disclosure, requiring the immediate reporting of all material events related to the fund’s investments. This includes any new or unexpected obligations on the issuance, such as the fund taking out a loan. Beyond these specific events, the platform must disclose any material information pertaining to the investments, along with any other data or documentation specifically requested by FRA.

To initiate an investment, the platform is mandated to provide a digital subscription request form that includes an explicit declaration requiring the investor to acknowledge and accept the risks associated with the fund’s units. To guarantee a secure, centralized remote process and establish electronic ownership, the platform must open a dedicated bank account for receiving subscriptions for each individual issuance and immediately issuing a detailed electronic notification to the subscriber confirming the successful completion of the fund transfer.

The platform’s core duty is to provide immediate refunds to investors. This obligation kicks in under two crucial conditions: first, if the investor chooses to withdraw from the subscription within the designated period, and second, if the offering fails to reach the minimum coverage threshold required for it to be successful. To ensure full transparency, the platform must provide an electronic indicator that continuously and clearly displays the subscription coverage results.

Upon a successful subscription, the platform must immediately send an electronic notification to confirm the transaction with the investor. Crucially, the platform must then notify the Central Depository and Registry Company with unitholders’ data. This step is essential for formally registering the investors’ ownership of the investment unit. Finally, the platform is required to enable the immediate issuance of a digital investment unit to every subscriber as soon as released.

In all circumstances, every party to the Platform must adhere strictly to the principle of truthfulness: they are obligated not to disclose any data or information that deviates from the actual reality. Furthermore, they must actively verify the accuracy of any news they announce before public dissemination. Crucially, any party that fails to uphold this standard—by publishing misleading or inaccurate information—will bear the responsibility of compensating any persons harmed by that publication.

The parties to the Platform include: the Platform Manager, the Private Equity Fund and Investment Manager, the Management Services Company, the Subscriber or Redemption Applicant, the Central Depository and Registry Company and any other parties approved by the Authority according to the business model.

The Resolution establishes governing controls for the early redemption of investment unit, enabling unitholders to divest from the investment before the Fund’s maturity date. This redemption process, managed directly through the Private Equity Fund, must strictly comply with all rules and conditions laid out in the official Information Memorandum—a document requiring prior approval from the Authority. To execute these redemptions, the Fund Company can utilize its existing available liquidity, or it can source the necessary capital by accepting new purchase requests in the form of subscriptions or secured loans.

The Resolution enforces strict limitations and procedural requirements regarding the redemption of investment documents. The Fund Company’s ability to fulfill redemption requests is capped at a legally defined maximum of 20% of the total issued investment units.  Furthermore, the Fund Company is obligated not to retain these units for more than one calendar year. The Company is mandated to resolve the status of these units within the calendar year. It must either sell these investment units to third parties using the electronic forms approved by the Authority, or it shall reduce the size of the Fund or the specific issuance within the designated year through the cancellation (or retirement) of these repurchased units.

All repurchased investment units have no voting rights and are not entitled to any dividends for the entire period they are held by the Fund Company. Moreover, these neutralized units must be deducted from the quorum used to calculate voting requirements in the unitholders’ assembly, ensuring the integrity of shareholder decisions.

The Platform is obligated to provide the electronic forms approved by the Authority that are necessary for redemption process. These forms must include the data of the unitholder requesting redemption, the number of units requested for redemption, the dates and value of any outstanding installments (if applicable), and the net asset value (NAV) of the investment unit based on the last value calculated by the Management Services Company.

FRA Issues Regulations on Digital Insurance Policies  – Wednesday 1 October 2025 

• FRA allows the digital issuance and distribution of insurance policies, provided companies strictly follow Board Resolutions 139, 140, and 141 governing the use of FinTech.
• All premium payments for digital policies must go directly to the insurance company. Marketing and distribution entities (brokers or agents) are strictly prohibited from collecting these payments.
• Insurance companies must provide full disclosure of all terms and conditions for policies distributed electronically.
• The rules accredit specific channels for marketing and distributing these digital policies, including banks, postal services, digital brokers and telecommunications companies.
• The new framework cancels Resolution No. 122 of 2015 but maintains the enforcement of Resolutions 729, 730, and 902 OF 2016.

In a key step to drive digital transformation in the insurance sector, FRA Board led by Dr. Mohamed Farid, issued Resolution No. 199 of 2025. This resolution governs the digital issuance and distribution of policies, aiming to boost operational efficiency, expand customer reach and increase insurance inclusion.

This resolution is part of FRA’s continuous effort to develop the Egyptian insurance sector. It aims to adopt the latest global practices, ensure compatibility with rapid technological change, and implement the Unified Insurance Law No. 155 of 2024. By doing so, the sector can better keep pace with global shifts in the insurance and non-banking financial services industries. Significantly, the new resolution nullifies FRA Board Resolution No. 122 of 2015 which only allowed insurance companies to issue certain standard policies electronically.

Resolution No. 199 of 2025 is a sophisticated legislative innovation. It builds directly upon Resolutions 139, 140 and 141 of 2023 which set foundational rules for technology infrastructure, digital identity and digital contracts. The new resolution expands these controls and translating them into the practical regulation of digital policy issuance and distribution within the insurance sector.

Digital Policy Issuance is permitted through an insurer’s information network systems, but only with explicit FRA approval. To gain approval, companies must strictly adhere to the technology standards set out in FRA Board Resolutions 139, 140 and 141 of 2023. These foundational resolutions govern the necessary Technological Infrastructure and Information Systems, Security Measures for FinTech, Digital Identity and Contracts and the FinTech Outsourcing Registry. Additionally, all digital policies must be based on digital contracts and the company’s databases must be confirmed as linked to FRA’s central systems. The resolution offers significant benefits, most notably greater customer flexibility. Clients are permitted to print the policy directly and the policies can be marketed through officially approved channels, which facilitates the wider distribution of insurance products. FRA’s strategic goals are to facilitate customer access, reduce administrative costs and time and ensure high data quality and system integration with the Authority.

To apply for digital issuance, insurance companies are required to submit a formal request along with a detailed plan for digital issuance and distribution. This plan must outline the required insurance procedures and include materials – such as written documents and video clips – to introduce the product to customers, ensuring they review and acknowledge all associated terms and risks. The company must also provide a formal commitment to full compliance with all relevant FRA Board Resolutions, specifically Resolutions 139, 140, and 141 of 2023.

Additionally, the Authority will take no more than 30 days from the submission date to review the application and may request any necessary supplementary information. Critically, the review will also consider the company’s supervisory (regulatory) and judicial record from the preceding two years. This thorough vetting ensures the technical and regulatory readiness of companies before they are approved to issue digital policies, thus providing maximum protection for customer rights.

The regulatory framework strongly supports the shift toward a non-cash economy and enforces strict financial transparency to protect both customers and companies. To achieve this, the resolution mandates that customers pay all premiums directly into the insurance companies’ accounts. Acceptable payment methods include Point-of-Sale (POS) devices issued to the distribution entity, any other company-specific non-cash method, or general electronic payment methods like bank direct debits or payment cards. Crucially,  FRA has explicitly prohibited any third-party marketing or distribution entity from collecting or depositing premiums into their own private accounts, obligating them to use only the sanctioned, the mentioned payment channels.

Regarding operational controls and customer protection, FRA requires insurers to implement several measures. These include establishing clear contractual terms for all distribution agreements, displaying minimum required data on the digital platform and providing full disclosure of policy terms in the printed document. Coverage begins only upon the payment of the first actual premium. While marketing entities may input essential client data, they are prohibited from making any modifications. For Company Responsibility and Client Data, the insurance company alone bears the full burden of verification. This includes digitally confirming the accuracy of the National ID number, verifying mobile phone number ownership, and screening the data against Anti-Money Laundering (AML) and sanction lists. Clients are obligated to notify the company of any changes to their personal information.

FRA requires companies to clearly inform customers that the distribution entity is merely a marketing channel and holds no compensatory obligations for claims. Full responsibility for liability rests entirely with the insurance company. To support this, insurers must establish a dedicated call center specifically for digital policy customers to handle inquiries and complaints, with the contact details clearly printed on the policies.

FRA has significantly broadened the range of partners insurance companies can use for digital distribution. The resolution newly authorized three key entities: Banks registered with the Central Bank, Egypt Post and Nasser Social Bank. These additions complement the channels previously approved under Resolution No. 122 of 2015, which already included Digital Insurance Brokers, Airline Companies, Telecommunications Companies and Licensed E-commerce Platforms. The framework also incorporates other channels already approved for the electronic distribution of micro-insurance policies.

Furthermore, insurance companies must submit a copy of every finalized contract with these marketing and distribution entities to FRA. These documents must explicitly detail the types of policies being marketed, the specific marketing plans and outlets to be utilized and all other contractual obligations. Crucially, the contracts must also include a clear, mutual commitment from both parties to protect data confidentiality and information privacy. This comprehensive requirement ensures that all distribution entities operate as licensed partners under FRA’s supervision, thereby strengthening confidence in these new channels.

The resolution mandates that insurance companies must submit a formal request to FRA to market and distribute their policies through any of the aforementioned entities (the approved channels). FRA will review the application and has the right to request any supplementary data or documents it deems necessary. The final decision on the request will be issued within a maximum of 30 days from the date of submission.

The new framework explicitly mandates the continued enforcement of three specific 2016 FRA Board Resolutions, namely, Resolution No. 729 of 2016 details the technological controls and information security rules necessary for the e- issuance and distribution of standard policies. Resolution No. 730 of 2016 provides the executive controls for these standard electronic policies. Finally, Resolution No. 902 of 2016 governs the definition and executive controls for the e-issuance and distribution of micro-insurance policie

FRA Issues Regulations for Digital Insurance Brokerage –  Wednesday 1 October 2025 

• Digital Brokers must meet all licensing requirements, submit a detailed business plan and clearly define the insurance products intended for digital offering.
• Companies shall submit a live version of the digital platform to FRA for review before its launch, along with the crucial results of penetration and vulnerability tests.
• Insurance offers and policies must be issued instantaneously (in real-time) through seamless electronic interface connections between the Digital Broker’s platform and the insurance companies’ systems.
• Brokers are required to use secure servers for storing customer and insurer data, guaranteeing full confidentiality.
• To finalize policy issuance, broker must secure the customer’s formal approval of all required declarations.

FRA Board of Directors issued Resolution No. 198 of 2025 establishing comprehensive controls for all digital insurance brokerage activities. This move is designed to accelerate digital transformation within the non-banking financial sector, create a robust regulatory environment supporting FinTech in insurance and enforce the stipulations of the new Unified Insurance Law No. 155 of 2024.

The resolution lays out strict requirements for licensed brokerage firms aiming to conduct business digitally. To gain approval, companies must already hold a valid license from  FRA for digital activity, submit a Board-approved business plan and clearly specify the digital products and services they intend to offer. Furthermore, they must adhere to the rigorous standards for digital services and cybersecurity outlined in FRA Board Resolutions 139 and 140 of 2023.  Companies must also provide FRA with a live version of the digital platform, including the essential results of penetration and vulnerability tests.

The new rules mandate that companies complete the issuance of insurance offers and policies instantaneously (in real-time). This is achieved through secure electronic interface connections (Web Service API) linking the Digital Insurance Broker’s platform directly with the insurance companies’ systems. The Digital Broker is explicitly responsible for ensuring that the insurance companies have fully prepared their technological infrastructure before the instant connection and information exchange established.

Digital Insurance Broker is mandated to securely store all customer and insurer data on protected servers, strictly preserving confidentiality and prohibiting disclosure outside the limits of the law. Digital Brokers shall clearly display their FRA license and approval on the digital platform and making all relevant service information readily available.  In addition, brokers must prepare all necessary declarations and acknowledgements for the customer to review and formally approve the terms and benefits before the policy is issued.

Furthermore, brokers are required to enhance accessibility by enabling direct customer service communication through the platform and allowing customers to neutrally compare insurance products of the same type.

On the other hand, the resolution strictly prohibits brokers from collecting premiums or fees by any method that routes funds into the broker’s own account. Instead, brokers must rely exclusively on the non-cash collection methods provided by the insurance company.

The resolution states that brokers must adhere to all cybersecurity requirements stipulated in previous FRA Board resolutions. This includes an obligation to conduct periodic penetration tests on the platform at least once annually, as well as following any material change to the technical systems. The broker must submit the results of this security test directly to FRA.

Additionally, it mandates that the platform undergo a Vulnerability Test at least once every three months and testing whenever a material change occurs in the technical systems. FRA must be immediately provided with the results of all these tests. Furthermore, the digital platform must be periodically developed and updated as needed and FRA reserves the right to request any related data or documentation.

Insurance companies that contract with a Digital Insurance Broker bear critical responsibilities. They must first verify that the broker has secured the necessary FRA approval before finalizing the agreement. They must also ensure that the electronic link established between their systems, the broker’s is dedicated exclusively for brokerage purposes, and that all product prices are displayed accurately according to the approved technical basis.

Companies must ensure their own readiness by preparing their technological infrastructure for instant (real-time) linking, information exchange and digital communication. They are required to independently verify the integrity and safety of the broker’s Penetration Test and Vulnerability Test results. Crucially, they must notify FRA immediately of any security breaches or violations the moment they occur.

Moreover, companies must offer specific channels for the e-collection of premiums using only companies registered in FRA’s dedicated registry for electronic collection. This ensures that all premiums are transferred directly into the insurer’s account.

Ultimately, this resolution is a strategic move by FRA to enhance digital transformation and raise the efficiency of the insurance market, which will expand coverage and make services accessible to more citizens, thereby boosting insurance, investment and financing inclusion.