الهيئة العامة للرقابة المالية

FRA Chairman Delivers Comprehensive Lecture on Short Selling Mechanism and New Rules – Monday 7 September 2026

Dr. Islam Azzam,  FRA Chairman delivered a comprehensive lecture on short selling mechanism following the release of the updated regulatory framework, paving the way for the full rollout of the newly regulated mechanism on the Egyptian Exchange (EGX) for the first time.

Through a detailed and technical explanation tailored for investors, market specialists and the public, Dr. Azzam highlighted the key characteristics and benefits of short selling, along with its expected positive impact on Egypt’s capital market. He outlined the core obligations of all participating entities, including the lender, borrower, custodian, Misr for Central Clearing, Depository and Registry – MCDR and EGX, while detailing the operational mechanics of the new Central Lending System.

During the session, Dr. Islam Azzam addressed the most frequently asked questions regarding short selling, covering the structure, investment and distribution of financial returns, as well as the fundamental differences between securities lending for short sales and margin trading. He also underscored the advantages of combining both mechanisms on EGX to strengthen price efficiency and boost market liquidity.

Watch the full lecture here

FRA Launches Working Group to Drive Social Responsibility Across Non-Banking Financial Sector – Sunday 6 September 2026

Dr. Islam Azzam,  FRA Chairman:

• Our priority is building partnerships and initiatives that address real societal needs—especially for those most vulnerable.
• We must leverage non-banking financial tools to deliver tangible social impact and unlock the sector’s full capabilities.

Dr. Islam Azzam, FRA Chairman issued a decree forming a dedicated working group to embed social responsibility principles into non-banking financial activities. Chaired by Dr. Tarek Seif, FRA Vice Chairman, the initiative aims to institutionalize social responsibility and sustainability practices across the non-banking financial sector (NBFS) and amplify the social impact of services offered by regulated entities.

 The working group is primarily tasked with formulating FRA’s social responsibility strategy in line with national priorities and Sustainable Development Goals (SDGs), while launching initiatives to expand access to non-banking financial services for underprivileged groups and enhance financial literacy as a core pillar of financial inclusion.

Dr. Islam Azzam emphasized that establishing this working group reflects FRA’s strategic shift toward transitioning social responsibility from isolated initiatives into an integrated, sector-wide institutional framework. This approach ensures sustainable, measurable outcomes while leveraging the sector’s resources to advance national development efforts.

He noted that social responsibility serves as a vital catalyst for financial inclusion, sustainability and social development, stressing the need for initiatives tailored to community needs. Furthermore, he highlighted the importance of fostering collaboration among government bodies, financial institutions, industry associations and civil society, alongside developing regulatory frameworks that incentivize non-banking financial institutions (NBFIs) to broaden their social responsibility initiatives and sustainability practices.

The working group will be vice-chaired by Ms. Rasha Koleib, with FRA members including Ms. Abeer Hamdy, Ms. Dalia Mounir, Mr. Bedeir El-Adawy, Ms. Yasmine Hassan Mostafa, Ms. Amal Salah, Ms. Anne Albert, Ms. Alyaa Sadek, Ms. Heba Eissa, Mr. Saher Ahmed, Ms. Aya Ali, Ms. Doaa Belal, and Ms. Mervat Ahmed. The panel also features Ms. Rania Attia and Mr. Mahmoud Nassim from the Financial Services Institute (FSI), a representative from the National Alliance for Civil Development Work, and two independent experts appointed by the Chair.

 Dr. Mohamed Abdel Aziz, Assistant to Chairman and Vice Chairman of FSI, alongside Dr. Maha Marwan, Senior Advisor to FRA Chairman, will serve as advisors to the group.

The working group’s mandate encompasses executing financial literacy and awareness programs, alongside field initiatives targeting key socio-economic institutions and groups. These efforts aim to broaden understanding of non-banking financial services and facilitate access to them. Additionally, the group will pursue strategic partnerships and protocols with national entities focused on sustainable development and social responsibility to implement joint, measurable-impact initiatives.

The group will also launch collaborative initiatives with industry associations and non-banking financial institutions (NBFIs) to promote social responsibility activities, transforming them into embedded, sector-wide sustainable practices rather than isolated efforts.

To foster knowledge exchange and best practices, the working group will organize an annual Social Responsibility and Sustainability Conference for the non-banking financial sector. The event will showcase global trends and highlight standout initiatives by FRA-regulated entities, encouraging institutions to adopt high-impact practices.

Furthermore, the working group is tasked with refining legal and regulatory frameworks to incentivize social responsibility across NBFIs. This involves identifying legislative gaps, proposing targeted solutions and evaluating the establishment of charitable investment funds as sustainable financing mechanisms for community development.

FRA Issues First Comprehensive Consumer Finance Guide – Saturday 5 September 2026

Dr. Islam Azzam, FRA Chairman:

• This Guide creates a single regulatory reference, streamlining compliance for consumer finance companies.
• Expanding sector activity and complex regulatory demands made a unified reference essential for boosting compliance efficiency.
• Protecting consumer rights and ensuring market stability are fundamental pillars for driving sector growth and maximizing its contribution to the national economy.

Dr. Rehab Taha, Assistant to Chairman:

• The Guide simplifies compliance and gives companies a practical benchmark for internal audits.
• We are continuously updating non-banking financing regulations to match evolving business models and emerging risks.

Financial Regulatory Authority (FRA) has issued its first comprehensive guide governing consumer finance companies. Serving as a unified regulatory reference, the Guide is designed to help market participants navigate their legislative obligations and streamline compliance across the sector.

The Guide responds to the rapid expansion of consumer finance, marked by a growing roster of providers and increasingly diverse financing products. It addresses this complexity by consolidating past decrees, instructions, and circulars into one unified regulatory framework.

Additionally, it clarifies licensing, incorporation, and ongoing operational requirements for both existing and newly registered firms.

Grounded in Law No. 18 of 2020 regulating consumer finance activities alongside executive board decisions and official circulars issued to date, the Guide outlines obligations across every operational phase. It covers essential setup and governance requirements, including incorporation procedures, licensing parameters, capital thresholds, shareholder structures, board composition, key executive roles, sub-committees and internal control systems. Additionally, operational standards and financial soundness are clearly defined, setting benchmarks for solvency, financial statement preparation, standard financing contracts and branch registration.

To safeguard consumers, the Guide establishes strict marketing, advertising and disclosure rules that force companies to clearly present repayment schedules, total costs, fees, benefits and associated risks. Crucially, the regulations explicitly prohibit taking blank signed documents or trust receipts as collateral.

The Guide details Anti-Money laundering and counter-terrorism financing (AML/CFT) requirements, customer due diligence (CDD) procedures, suspicious transaction reporting, and record-keeping standards. It also establishes rules for reporting client data to credit bureaus, enhancing credit information integration, underwriting decisions and risk management.

Regarding credit issuance, the Guide outlines parameters for evaluating borrower creditworthiness, auditing existing facilities, tracking non-performing loans and ensuring funds are utilized for their designated purposes. Additionally, it approves digital credit scoring systems based on financial standing and verifiable repayment capacity.

Furthermore, the Guide includes Basel III standards related to financial solvency which cover capital adequacy ratios, financial leverage and liquidity ratios, in addition to regulations governing provisioning, concentration risks, financial stress testing and periodic reporting. These requirements are designed to bolster the capacity of financing companies to fulfill their obligations, mitigate credit, operational and liquidity risks and maintain the integrity of their financial positions.

The framework also integrates digital transformation and cybersecurity mandates. Licensees are required to maintain necessary IT infrastructure and information systems, establish governance frameworks for IT risk management and cybersecurity, and undergo routine penetration testing—compliance with which is a mandatory condition for license maintenance

The rules establish a formal registry for third-party collection agencies across all non-banking financial sector (NBFS) activities. Consumer finance providers must disclose contracted collectors to clients, verify collector identities, maintain official communication channels , address consumer grievances and take the necessary corrective measures.

Furthermore, providers are now required to maintain life and permanent total disability insurance for borrowers up to age 65, with coverage matching the outstanding balance.

The Guide details procedures governing cash advances, mechanisms to detect and prevent unauthorized loan monetization and administrative penalties for non-compliance.

Dr. Islam Azzam, FRA Chairman emphasized that consumer protection and market stability are critical pillars for driving consumer finance growth and maximizing its contribution to the national economy. He added that the Authority’s responsibility includes ensuring that regulated entities comply with consumer protection rules while monitoring the soundness of underwriting and loan management practices.

He stressed that clarity and integration in regulatory rules are critical elements for efficient oversight, explaining that offering regulatory requirements in a structured format helps companies identify their obligations, supports monitoring and evaluation efforts and drives consistent enforcement across the market.

He added that oversight extends across every phase of the customer relationship—from advertising, marketing and fee disclosure, to credit assessment and contract execution, through to loan administration, ongoing obligations and client data protection. This guarantees that consumers possess all necessary information to make informed financial decisions while curbing practices that could harm their interests or impose unclear liabilities.

Dr. Islam Azzam emphasized that the Authority will continuously address market violations or practices that compromise consumer rights or threaten the integrity of the non-banking financial sector (NBFS). Regulatory supervision includes ongoing monitoring of rule compliance and taking prompt corrective or enforcement measures against violations in accordance with the law.

For her part, Dr. Rehab Taha, Assistant to Chairman for Finance Affairs, stated that preparing the guide stemmed from the need to organize consumer finance rules into a single integrated framework. This makes it easier for institutions to pinpoint and fulfill their obligations while boosting oversight.

She noted that the Guide acts as a practical benchmark for companies to review internal workflows and ensure full alignment with FRA directives, while simplifying regulatory requirements across all operational areas.

Dr. Rehab Taha added that the Authority remains committed to updating the non-banking regulatory landscape in tandem with evolving business models and emerging risks, while maintaining necessary safeguards for market soundness and consumer protection.

The Authority reaffirmed that developing regulatory and supervisory frameworks for non-banking finance is an ongoing process designed to keep pace with market shifts and associated risks, backed by a permanent commitment to safeguarding consumer rights and raising public awareness regarding legally protected financial rights.

(To view the full guide, click here)