الهيئة العامة للرقابة المالية

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)

FRA, Egypt Post Launch “Bareedi” Digital Service for Official Correspondence  – Friday 4 September 2026

Dr. Islam Azzam,  FRA Chairman:

• Overhauling non-banking financial frameworks soon… shifting from paper to registered e-mail.
• Leading the drive to digitize legal and administrative workflows—cutting costs and saving time.
• Digitization is core to our strategy for seamless electronic integration across the market.

Dalia El-Baz, Chairperson of Egypt Post:

• “Bareedi” offers a legal-grade, official channel for digital correspondence.
• Driving down operational overhead, curbing paper use and boosting environmental sustainability.

Financial Regulatory Authority (FRA) and the National Postal Authority (Egypt Post) have signed a strategic cooperation protocol to launch “Bareedi” electronic registered mail service. The initiative will digitize official notifications, disclosures and regulatory correspondence between FRA and its regulated entities, streamlining administrative workflows, enhancing security and speeding up regulatory oversight.

Dr. Islam Azzam, FRA Chairman and Ms. Dalia El-Baz, Chairperson of Egypt Post signed the protocol alongside senior executives from both sides.

FRA Chairman stated that signing the protocol represents a significant new step toward digitizing official procedures and developing communication channels between the Authority and its regulated entities. He noted that leveraging registered e-mail services will enhance the official notification system, save time, effort, and costs, while guaranteeing high levels of security and reliability.

He added that establishing a sustainable electronic platform for official communications marks a major shift away from paper-based document exchanges, transitioning toward secure, authenticated digital channels that reinforce governance frameworks and streamline administrative processes.

Dr. Islam Azzam explained that FRA will take all necessary steps to update regulatory frameworks across the non-banking financial sector to enable the platform’s rollout, ensuring its seamless integration into official notification and communication workflows.

FRA Chairman noted that official notifications issued by the Authority will hold the same legal standing as traditional registered mail with return receipt requested, providing verifiable digital proof of the sender’s identity, as well as exact timestamps for dispatch and delivery.

He emphasized that the agreement forms part of a broader digital transformation roadmap designed to strengthen non-banking financial governance. This initiative includes deepening electronic integration with regulated entities, advancing data analytics capabilities, and leveraging artificial intelligence applications to monitor key performance indicators and financial products.

Dr. Islam Azzam stressed that digital transformation has become a critical driver of growth in the non-banking financial sector, enabling broader market reach, higher service efficiency, enhanced oversight and stronger protection for stakeholder rights. He affirmed that FRA remains committed to adopt cutting-edge technological solutions to boost the sector’s competitiveness and investment appeal.

For her part, Dalia El-Baz, Chairperson of the National Postal Authority, stated that the protocol aligns with Egypt Post’s role in supporting the country’s digital transformation agenda. She emphasized that providing official, secure channels for electronic correspondence accelerates administrative workflows, enhances government and regulatory service efficiency and lowers operational overhead. Furthermore, it reduces reliance on paper and optimizes resource and energy consumption—advancing environmental sustainability while boosting overall business competitiveness.

She explained that the protocol enables the use of “Bareedi” service to exchange regulatory decisions, notifications, compliance violations, financial demands, disclosures, official reports, invitations and other legally binding documents between FRA and its regulated entities. The collaboration includes setting up a dedicated official registered postbox for FRA to securely receive incoming disclosures and filings, as well as dispatch outgoing decisions and regulatory notices. She noted that “Bareedi” serves as the digital alternative to traditional registered mail and registered mail with return receipt requested. It ensures identity verification for both sender and recipient, provides authenticated timestamping for dispatch and delivery and safeguards message content and attachments from loss, tampering or unauthorized modification—all while supplying fully verifiable digital evidence for transmission and delivery.

Dalia El-Baz added that collaborating with FRA marks a significant step toward building an integrated digital ecosystem for regulatory communications, effectively shortening processing times and facilitating a seamless transition from paperwork to authenticated digital mail.

Under the protocol, FRA will formally notify all regulated entities of “Bareedi” digital service for official correspondence. Additionally, FRA and Egypt Post will co-host joint workshops and technical orientation sessions to demonstrate the platform, streamline technical integration and drive phased adoption across the market.

Clarification Statement from the Financial Regulatory Authority Regarding “Assignment of Rights” in Real Estate Developers’  Contracts – Thursday 3 September 2026

Financial Regulatory Authority (FRA) has addressed inaccurate media reports surrounding its recent press statement on “assignment of rights” clauses in real estate developers’ contracts.

FRA clarifies that it has issued no new decisions or directives on the matter, nor has it prohibited the inclusion of “assignment of rights” clauses in real estate agreements. The Authority reaffirms that the mechanism remains fully permitted under Egyptian Civil Code (Chapter One, Part Four).