الهيئة العامة للرقابة المالية

• FRA urges caution against unlicensed financial services

Financial Regulatory Authority (FRA) is continuing its robust efforts to regulate the non-banking financial markets and protect investors. As a key step in this ongoing mission, FRA has added three companies and 36 social media pages to its negative list. This list is a crucial tool for identifying and penalizing entities that are operating in violation of non-banking financial laws and that pose a risk to the safety and security of financial transactions.

The companies were found to have committed specific and serious violations. First, they were illegally raising funds by soliciting money from the public for investment purposes without adhering to the proper procedures outlined in Law No. 146 of 1988. Second, they invited the public to participate in a public subscription, or an initial public offering (IPO), without obtaining the necessary regulatory approvals.

The list also includes several social media pages that encourage consumer finance customers to “cash out” their credit limits. This practice is a clear violation of the law, as it converts consumer financing – which is intended for purchasing goods and services -into cash loans, which is not the purpose for which the credit was granted.

In light of this, FRA is renewing its warning to all citizens. The public is urged not to be enticed by offers of financing or investment from any unlicensed entity or from those who are violating non-banking financial laws. When dealing with these entities, consumers face the risk of losing their money and forfeiting their legal rights.

FRA first published its negative list of entities back in May, based on complaints the Authority received. The list, which identifies entities operating in violation of non-banking financial laws and regulations, will be updated regularly to reflect new developments and findings.

The Authority had previously launched a dedicated email to receive complaints from individuals who receive investment or financing invitations that contain suspicions of fraud, deceit or deception. Additionally, there is a special email for companies and institutions wishing to verify if their business models comply with legislative and regulatory requirements which ensures their stability and the reliability of their services.

To view the official negative list of entities and social media pages that violate non-banking financial laws, click here:

https://services.fra.gov.eg/alerts

To view the list of entities licensed to practice non-banking financial activities (investment, non-banking finance, insurance), please visit the following link:

https://fra.gov.eg/registration/

To learn more about the legal and regulatory requirements for promoting public offering, please email us at Inquiries@fra.gov.eg.

To report receiving invitations from unlicensed entities, please contact the following email: whistleblowing@fra.gov.eg