الهيئة العامة للرقابة المالية

• The Assembly meeting invitation should clearly explain how to participate and how to vote

• The electronic system will include the necessary insurance and protection to access the meeting’s members and ensure the confidentiality of voting

• The decision allows the General Assembly to get official copies of reports and then vote based on those reports.
• The electronic system should allow the attachment of documents on the topics to be discussed at the meeting and expressing the opinion thereon.
• Members cannot appoint someone else to vote on their behalf.

In a step to develop non-banking financial sector, FRA’s BOD headed by Dr, Mohamed Farid issues decision No. 69 of 2024 amending decision No. 101 of 2015 on private insurance fund’s governance rules. The said decision allows members of private insurance funds to participate remotely in General Assembly and Extraordinary General Meeting.

The decision comes with FRA’s efforts to promote digitalization in non-banking financial sector and facilitating access to its various products. Private insurance funds play a crucial role in enhancing non-banking financial sector’s flexibility and strength and boosting economic growth.

The new decision added a new sub-clause of the Board of Directors Decision No. 101 of 2015 – which includes rules set for attending the general and extraordinary meetings via electronic means, giving opinion and voting remotely – to the General Assembly clause stipulated in the governance manual of private insurance funds annexed to the decision .

The decision also stipulates that the invitation to the General Assembly should define the technological mechanism used for holding the meeting and voting process as well as means of communication that enable fund members to submit any inquiries related to the meeting, topics being discussed at the meeting, or how to vote on these topics.

The decision also stipulates that electronic system shall be protected by rigorous security protocols to ensure only authorized members can access meetings on the scheduled date. Also , it shall ensure the confidentiality of voting on general assembly resolutions, in accordance with the measures approved by the Authority.

In addition to ensuring both the member’s identity and their documented presence at the General Assembly meeting, in accordance with the regulations established by the Authority in this regard. As well as determining if the number of members attending reaches the minimum necessary to proceed with the meeting, as mandated by Article 20 of the Law on Private Insurance Funds.

Private insurance funds are insurance schemes that are licensed by the Financial Regulatory Authority and operate independently from the company that created them. They are formed to grant benefits to a group of employees , in the form of insurance benefits, additional pensions, social benefits or health care. It is noteworthy that Private Insurance Funds Law No. 54 of 1975 and its Executive Regulations govern this type of funds.

The decision stipulates that the electronic system must support attaching documents relevant to the issues to be discussed in the General Assembly Meeting. Also, the system must ensure all fund members have access to relevant meeting documents, allowing them to cast votes on each topic, raise inquiries before 5 working days of the meeting and during its convening. In addition, officials responsible for the assembly are required to answer member inquiries through this system.

The decision allows members to obtain copies of official reports that document the General Assembly meeting, including details on members’ attendance and voting results for each topic in the agenda.

However, the decision restricts proxy voting for remote attendance at the General Assembly meeting. It allows members who pre-cast their votes to change them within 5 working days before the meeting. They also retain the right to attend the next meeting and change their vote in person.

During the General Assembly Meeting, Fund’s auditor, secretary, and vote counters shall define the method used to verify the identity and status of each fund member

The Fund keeps an electronic recording of the General Assembly Meeting. It shall be attached to the minutes of the General Assembly Meeting submitted to the Authority.

In any event , the Fund shall provide the Authority with any information, data or document regarding such meetings

It is worth mentioning that there are over 676 licensed funds operating in Egypt by the end of 2023, with roughly 5 million people enrolled in them.

Private insurance funds can be classified as follows: fellowship funds, bonus funds ( for individual contracts) , health care funds, supplementary pensions and funds with special nature.