الهيئة العامة للرقابة المالية

• All activities outside headquarters now require FRA pre-approval.
• Diverse branch classifications introduced to optimize business agility.
• New mandates set for credit structuring and integrated risk management.
• Enhanced registration protocols coupled with rigorous field inspections.
• Entities have a 6-month grace period to align with new standards.

FRA Board of Directors has issued a comprehensive regulatory framework governing the lifecycle of non-banking finance branches. This decree establishes rigorous standards for the registration, relocation, modification, and closure of licensed entities. The initiative is designed to bolster institutional discipline and optimize the geographic footprint of financial services, ensuring that expansion-related risks are meticulously managed to safeguard market stability and consumer rights.

Decree No. 44 of 2026, ratified by the Board chaired by Dr. Mohamed Farid, before his appointment as Minister of Investment and Foreign Trade, prohibits non-banking financial companies (NBFCs) from operating outside their primary headquarters without prior FRA approval and formal registration. This mandate ensures that all geographic expansions undergo a stringent regulatory audit to validate the entity’s operational integrity and credit-risk readiness.

The decree included a clear definition of branch types, including finance branches that carry out all aspects of activity. In addition to marketing branches whose role is limited to promotion and document collection without granting financing or collection , mobile branches through movable units, and seasonal branches linked to specific events or seasons, achieving operational flexibility without prejudice to governance controls.

The decree mandates that companies establish a formal organizational structure for their branch networks. Companies must define clear credit decision-making policies, whether managed through central, regional, or branch-level committees. Authority must be delegated based on financing tiers, product types, and defined risk tolerance levels to maintain a balance between operational efficiency and regulatory oversight.

The decree outlines the mandatory documentation and procedural requirements for branch registration. This includes formal Board approval, specified branch classification and location, and the designation of a branch manager. Applicants must submit a recent Commercial Registry extract, legal proof of premises possession, the manager’s professional CV, and payment of the prescribed inspection fees. Furthermore, FRA reserves the right to conduct on-site field inspections to verify compliance before the final issuance of the registration certificate.

The decree mandates prior approval from FRA for the relocation, modification, or closure of any branch. Companies are legally obligated to implement necessary safeguards to protect client rights and regularize the status of employees during such transitions. Furthermore, FRA is empowered to take administrative disciplinary actions in the event of non-compliance with these regulatory standards.

Specific supplementary requirements have been established for mobile and seasonal branches. These include the submission of comprehensive operational plans, defined protocols for the secure handling and timely delivery of customer documentation, and mandatory vehicle licensing and insurance. Additionally, mobile units must be equipped with GPS tracking devices to ensure continuous regulatory oversight of their movement and operations.

All existing non-banking finance companies must regularize their status according to these new provisions within a six-month grace period from the effective date. The decree becomes effective the day following its publication in the Official Gazette and on FRA’s official website.

Tags: , , ,