الهيئة العامة للرقابة المالية

FRA Issues Comprehensive Regulatory Framework for Government Insurance Funds – Sunday 1 February 2026

Dr. Mohamed Farid – FRA Chairman:

• Regulations ensure resource sustainability and protect beneficiaries’ rights.
• The resolution establishes a framework for preliminary, ongoing, and ex-post oversight.
• Funds are established by Prime Ministerial decree and may only commence operations following formal registration and a field inspection by the Authority.
• Robust internal controls and risk management frameworks serve as the primary line of defense in safeguarding fund assets.
• Funds shall submit periodic financial, actuarial, and investment reports, all of which must be audited by FRA-accredited auditors.
• Existing funds must reconcile their status within a year.

FRA Board of Directors chaired by Dr. Mohamed Farid, issued new regulations for government insurance funds. The new resolution aims at solidifying their financial positions, ensuring management efficiency, and protecting rights of their beneficiaries.

Resolution No. 265 of 2025 establishes a comprehensive regulatory and supervisory framework starting from the establishment  of the fund and extending to its registration, administrative and executive structure, internal control systems, financial disclosure, auditing, risk management, investment policy, and the Authority’s powers to monitor and intervene when necessary.

Dr. Mohamed Farid stated that this resolution is a significant step toward tightening control over government insurance funds. He noted that it creates a complete regulatory framework that starts at inception and goes beyond monitoring to encompass governance, internal control, financial disclosure, risk management, and investment policy.

FRA Chairman added, “Through these regulations, we aim to ensure the readiness of these funds before they begin operations, instill institutional discipline, and ensure efficient resource management to achieve financial sustainability, safeguard beneficiaries’ rights, and enhance long-term confidence in their management.”

The new resolution stipulates that government insurance funds are established by a Prime Ministerial decree based on a proposal from FRA Board. Public entities are allowed to submit proposals to establish funds provided they meet the necessary documentation. FRA may also request certified actuarial studies to verify resource adequacy and the fund’s ability to fulfill its obligations.

The resolution also prohibits funds from practicing activity until registered with FRA, granting the Authority power to conduct prior field inspections to ensure the availability of the necessary administrative, organizational, and information infrastructure.

Regarding governance, the resolution sets clear rules for the formation of the fund’s board of directors, its duties, and responsibilities. It mandates funds to provide FRA with meeting minutes for approval and regulates the executive structure, requiring a “no-objection” from the Authority before appointing individuals to key executive positions.

The said resolution emphasizes the importance of an effective internal control and risk management system. Funds must maintain organized and certified records – including policies, claims, investments, revenues, complaints, and lawsuits – with full support for electronic record-keeping.

Concerning financial disclosure and auditing, the resolution requires funds to prepare financial statements according to Egyptian Accounting Standards, submit them to the Authority by specified deadlines, and have their accounts audited by FRA-registered auditors.

Furthermore, funds must prepare comprehensive annual activity reports and periodic actuarial reports to measure fund adequacy. They must also establish an approved investment policy, adhere to FRA investment regulations, and submit periodic reports on their investments.

The resolution grants FRA the authority to intervene if violations or risks threaten the fund’s financial position or beneficiaries’ rights. Existing government insurance funds are required to reconcile their status in accordance with this resolution within a period not exceeding one year from its implementation.

Government insurance funds are entirely different from social insurance (pensions). They benefit approximately 30 million people and target specific groups against risks that insurance companies usually do not accept or those that the government chooses to manage itself.

There are currently six registered government insurance funds covering various sectors: custodians, postal services, motorized fishing vessels and their crews, motor insurance, insurance for Egyptian school students, and insurance for Al-Azhar education students.

A Strategic Milestone: FRA Sets Controls for Debt Collection Companies within Non-Banking Finance – Wednesday 28 January 2026

Dr. Mohamed Farid – FRA Chairman

• A new specialized registry: Ensuring companies’ compliance and safeguarding customer data.
• FRA registration is mandatory; NBFIs are prohibited from contracting non-registered companies.
• Required issued and paid-in capital must not be less than EGP 10 million, with equity of no less than EGP 20 million.
• Debt Collection Companies must maintain absolute confidentiality of all customer data.
• All contracts between financing entities and collection firms require prior FRA approval.
• Financiers must provide customers with collection company details and identity verification methods.
• Debt Collection Companies may only collect dues; practicing any financing activities is strictly forbidden.
• A 6-month grace period is granted to NBFIs to reconcile their positions.
• Cash payments are restricted to legal limits and certified receipts; funds must be remitted within five business days.
• Mandatory disclosure of collector details ensures consumer protection.

Financial Regulatory Authority (FRA), chaired by Dr. Mohamed Farid, has issued – for the first time – a new resolution regulating debt collection companies in non-banking finance. This decisive step reinforces consumer protection across the sector.

Resolution No. 278 of 2025 established several controls, most notably the establishment of a registry for companies and entities wishing to collect financial dues arising from financing granted by NBFIs. It further prohibited dealing with any unregistered collection entities.

Dr. Mohamed Farid stated that the new resolution reflects FRA’s commitment to regulate debt collection and establishing a clear legal and professional framework. This ensures the protection of customer rights while enhancing discipline and governance within the NBFI sector.

Dr. Farid explained that the specialized registry is a pivotal step to ensure dealings are restricted to qualified, supervised entities, preventing unregulated practices that could harm consumers or market integrity.

 He emphasized that requiring financing companies to notify customers of collection details is essential for building trust in the financial ecosystem.

The controls specify that the registry must include, at a minimum: the registered company’s name, legal form, purpose, headquarters address, the name of the Managing Director or executive manager, and contact details. NBFIs are strictly prohibited from dealing with any unregistered companies.

The resolution introduces rigorous eligibility criteria for registration, stipulating that applicants must be incorporated as commercial companies with a corporate mandate specifically centered on debt collection services. From a financial solvency standpoint, these companies are required to maintain a minimum issued and paid-in capital of EGP 10 million (or its foreign currency equivalent) and shareholders’ equity of no less than EGP 20 million.

Companies failing the equity requirement may qualify by proving three years of prior operation, provided their equity is at least equal to their paid-in capital.

FRA mandates that executive management maintain a good reputation and a clean track record. Both executives and collection personnel are required to successfully complete specialized training programs as prescribed by the Authority.

 Additionally, entities and managers must be free of criminal convictions or bankruptcy for three years prior to applying. A EGP 25,000 fee applies to all registration and renewal requests.

The registration process requires applicants to submit a formal request to FRA, evidenced by key documentation. Submissions must include the company’s updated Articles of Association, the most recent audited financial statements and auditor’s report, and a portfolio of prior collection service contracts. The Authority reserves the right to request any additional documentation necessary for its final decision. The Authority will study and decide on applications within 30 days of receiving a complete file.

 The registration is valid for 3 years, renewable for similar periods, provided a renewal request is submitted 3 months before expiration and all requirements continue to be met.

Registered companies must adhere to principles of integrity and exercise “due care.” They are prohibited from any practices that harm financing entities or customers. Along with the commitment to obtain prior approval from the Authority for contracts intended to be executed with non-banking financing companies or entities. They must only perform collection duties and avoid any financing activities.

This resolution prohibits debt collection companies from receiving payments through any means that results in funds being credited to their own corporate accounts. Instead, all dues must be collected via point-of-sale (POS) terminals provided by the contracting entity, the entity’s own electronic payment methods, or through checks issued by customers directly to the contracting financier.

Cash transactions are strictly limited to the limits set by the Law Regulating the Use of Non-Cash Payment Methods and must be documented using certified receipts issued to collectors as personal custody; the original receipt is provided to the customer, while a signed copy is retained by the company. All collected funds must then be remitted to the financier within a maximum of five working days.

Furthermore, the resolution obligates collection companies to maintain absolute confidentiality of all information and prohibits its disclosure, except in cases specified by law or upon request by the Authority (FRA). These companies are also required to submit semi-annual reports to FRA detailing their operations, contracted partners, customer lists and collection methods.

The resolution mandates that Non-Banking Financial Institutions (NBFIs), when engaging with registered  debt collection company, must proactively notify customers of the authorized company’s credentials. This includes clear methods for verifying collector identities, providing relevant contact information, and explicitly advising customers on which sensitive data must remain confidential. Furthermore, NBFIs must strictly limit the scope of these agencies to debt collection activities only. They are also held accountable for safeguarding their own legal rights, investigating customer grievances against collectors and implementing swift corrective actions. Moreover, NBFIs must submit semi-annual reports to the Authority. These reports must detail all contracted collection partners, total amounts recovered, and relevant customer demographics and geographic data. Additionally, any violations committed by collection companies during their duties must be reported to FRA immediately.

FRA Chairman holds the authority to impose administrative measures on companies that violate these provisions. Penalties range from formal warnings and temporary suspensions (up to one year) to de-registration. In cases of de-registration, re-entry into the registry is barred for a period of six months to five years, or escalate to permanent de-registration.

All non-banking financial entities are required to reconcile their existing operations and achieve full compliance with these controls within six months of the effective date.

FRA Wins Egypt Government Excellence Award for the First Time in the General Manager Category – Tuesday 27 January 2026

• Abeer Hamdy, Vice Assistant to Chairman, wins third place in the General Manager Category.
• Two FRA leaders distinguished themselves among the nation’s top ten, with one successfully securing a spot in the top three.
• Mohammed Farid, FRA Chairman: Government excellence is the result of a clear vision and integrated institutional framework within the Authority.

Financial Regulatory Authority (FRA), represented by one of its senior leaders, has won third place in Egypt Government Excellence Award for the first time in the “General Manager” category. This achievement took place during the fourth cycle of the award, held under the patronage of His Excellency President Abdel Fattah El-Sisi, President of the Republic.

This year’s awards witnessed extensive participation, with 2,844 nomination requests across 19 categories. Following evaluation and elimination processes that spanned more than a year, Financial Regulatory Authority emerged as a winner.

Two of the Authority’s leaders qualified among the top ten positions for the General Manager category, with one of them securing a spot in the top three.

Abeer Hamdy, Vice Assistant to the Chairman, and Christine Beshara, Supervisor of International Relations Central Department, represented FRA in these competitions. Both underwent a series of tests and performance measurements based on institutional quality standards and global methodologies established by the Egyptian government in cooperation with the United Arab Emirates.

During the ceremony, the top three winners were announced, resulting in Ms. Abeer Hamdy winning Egypt Government Excellence Award in the General Manager category , representing Financial Regulatory Authority.

Dr. Mohammed Farid, FRA Chairman attendee the ceremony alongside Dr. Khaled Abdel Ghaffar, Deputy Prime Minister for Human Development and Minister of Health and Population; Lieutenant General Engineer Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport. This is in addition to Dr. Rania Al-Mashat, Minister of Planning and Economic Development; and Ohood Al Roumi, Minister of State for Government Development and the Future in the UAE. The event also included several Deputy Prime Ministers, ministers, governors, heads of national entities, and prominent media figures.

Dr. Mohammed Farid expressed his pride and satisfaction regarding the Authority’s participation in Egypt Government Excellence Award and the success of one of its leaders in securing this prestigious award. He emphasized that this achievement reflects a significant evolution in the Authority’s performance and highlights the impact of investing in human resource development to improve service quality and enhance institutional efficiency.

He added that the Authority’s leaders and staff remain committed to clear strategic goals aimed at serving and protecting stakeholders. This commitment reflects positively on achieving distinguished government performance and contributes to elevating the standards of Egypt’s administrative body as a whole.