الهيئة العامة للرقابة المالية

FRA Mandates Factoring Companies to Verify Invoices via Unified Electronic System Prior to Financing  – Sunday 22 February 2026

Financial Regulatory Authority (FRA) has mandated that factoring companies verify invoices via a designated electronic system prior to financing. This initiative is designed to bolster the efficiency of the non-banking financial services sector, enhance governance and transparency, and mitigate the risks associated with double financing.

In collaboration with e-finance, the Authority inaugurated a digital factoring module on its electronic portal in early February. The system’s primary phase facilitates electronic verification of invoices against prior financing records by establishing a digital link with relevant government bodies, including the Ministry of Finance and the Egyptian Tax Authority.

This directive stems from Resolution No. 51 of 2026, issued during the Board of Directors meeting on February 9, 2024. Chaired by Dr. Mohamed Farid prior to his appointment as Minister of Investment and Foreign Trade, the resolution ensures that no more than one factoring transaction occurs for any single underlying asset. Furthermore, it enables companies to ‘freeze’ invoices on the electronic platform for the duration of the contract.

Factoring is a short-term financing mechanism that allows businesses to sell their invoices or outstanding accounts receivable to a third party (the factor) for immediate cash flow. This financial arrangement involves three primary participants: the seller, the debtor (customer), and the factor (factoring company).

The resolution further mandates that all factoring agreements include a provision for the registration of collateral in the Movable Collateral Registry. In compliance with Law No. 115 of 2015, this requirement secures the rights of financing entities and establishes a robust legal framework for all parties involved.

The second phase of the unified electronic system is set to deliver an end-to-end digital transformation of the factoring lifecycle – extending from initial invoice verification to final settlement. This transition is expected to significantly accelerate processing times, streamline administrative workflows, and reduce overall operational costs.

The resolution takes effect the day after its publication in Al-Waqa’i Al-Misriyya and on FRA website, providing companies a window to align their systems with the new regulations.

FRA Grants Licenses to 6 Companies for Non-Banking Activities – Wednesday 18 February 2026  

• Approvals issued for Olive Holding, Tharaa Insurance Brokerage, Taqa Financial Investments, Fawry Holding, Beltone, and Emirates NBD

FRA’s Incorporation and Licensing Committee grants license to six entities to operate in non-banking financial activities. These activities include participating in company incorporations and capital increase, insurance brokerage, bond trading and brokerage, and the promotion and underwriting of securities.

The Committee granted Olive Egypt Holding, Taqa Financial Investments, and Fawry Holding licenses to participate in company incorporations and capital increase.

Additionally, Tharaa received a license for insurance brokerage, while Beltone Securities Brokerage was licensed to conduct bond trading and brokerage. Furthermore, the Committee approved Emirates NBD to operate in the promotion and underwriting of securities.

In accordance with FRA Chairman Decree No. 3060 of 2023, Incorporation and Licensing Committee serves as the competent body responsible for approving the incorporation and licensing of companies operating within the non-banking financial sector.

The Committee’s jurisdiction extends to ratifying amendments to company’s statutes and endorsing employee incentive and motivation schemes. Beyond corporate governance, it serves a critical supervisory function by advising on the suspension of General Assembly resolutions within the securities and consumer finance sectors.

Beyond initial licensing, the Committee reviews requests to add new financial services or business mechanisms. It also manages the process for securities and consumer finance companies when they switch from one legal framework to another.

Furthermore, the Committee oversees the full operational lifecycle of regulated firms – from authorizing branch networks to managing liquidations, activity suspensions, and the professional registration of founding agents.

Tags: , ,

FRA Issues Framework for Establishing Auxiliary Bodies within the Insurance Sector – Wednesday  18 February 2026

Financial Regulatory Authority (FRA) has introduced a comprehensive regulatory framework designed to govern the establishment, registration, and oversight of Insurance Auxiliary Bodies. This move strengthens the insurance ecosystem by modernizing regulatory oversight and optimizing support service efficiency.

Resolution No. 49 of 2026 was issued following a board meeting on February 9, chaired by Dr. Mohamed Farid, the current Minister of Investment and Foreign Trade and former Chairman of the FRA.

“Auxiliary bodies” are defined as insurance institutes, training centers, computer and information technology centers, and data exchange hubs established jointly by insurance companies.

The resolution mandates a comprehensive suite of documentation for the formation of auxiliary bodies, including certified minutes of the general assembly, a formal statement of purpose, a strategic business plan, and a five-year economic feasibility study. Additionally, applicants must submit a proposed organizational structure, professional profiles for the Board and CEO, and a detailed projection of financial resources.

The resolution strictly prohibits auxiliary bodies from conducting direct insurance or reinsurance operations, as well as any ancillary activities. Their operational scope is legally restricted to their approved charter. Furthermore, these entities must provide FRA with immediate notification of any statutory or data amendments and are mandated to maintain comprehensive digital or physical registries of all services rendered.

Under this resolution, all auxiliary entities must be registered in FRA’s specialized registry following Board approval and the settlement of prescribed registration fees. The registry serves as a central database, recording critical institutional data such as name, operational objectives, principal headquarters, and executive management.

The resolution defines clear operational boundaries: auxiliary bodies must remain dedicated to their primary purpose and are barred from conducting insurance or reinsurance business. Key obligations include the mandatory reporting of bylaw changes to FRA and the maintenance of rigorous record keeping – either digital or physical – for all services rendered.

Auxiliary bodies are subject to FRA’s supervision and oversight. The Authority may conduct inspections to verify documents and data. Furthermore, these entities must provide FRA with an annual report on their activities and financial position within three months of the end of the fiscal year, accompanied by financial statements audited in accordance with Egyptian Accounting Standards.

The resolution empowers FRA Chairman to strike an auxiliary body from the registry in specific cases, such as violating the provisions of this resolution or legislation governing insurance activities, in accordance with the established regulatory controls.

Existing auxiliary bodies are granted a six-month grace period to regularize their status in accordance with the new provisions. This transition window commences the day following the resolution’s publication in the Official Gazette and on FRA’s official website.

This resolution aims to establish a clear regulatory framework for auxiliary bodies within insurance sector, enhance service efficiency, ensure disciplined oversight, and contribute to higher levels of governance and stability within the Egyptian insurance market.