الهيئة العامة للرقابة المالية

• FRA bans cash dividend payments and grants one-year grace period to adopt new digital distribution methods.
• E-wallets introduced as new method for dividends and investment returns.

FRA Board of Directors issued Resolution No. 226 of 2025. The Resolution, which amends provisions of the earlier Resolution No. 61 of 2017, focuses on strengthening procedures to enhance the protection of accounts for parties dealing with securities companies and boosting the efficiency of financial operations through technological innovation.

FRA Board of Directors mandated licensed custodians to ensure that their clients possess accounts with a bank registered with the Central Bank of Egypt (CBE) when opening a securities trading account for both buying and selling, provided that the Central Depository and Registry Company (MCDR)  is notified of these account details.

This amendment aligns with Egypt’s direction toward digital transformation and enhancing financial inclusion. It is also consistent with the Authority’s strategy aimed at supporting the digital infrastructure of capital markets, facilitating investors’ access to their financial dues in a safer, more transparent and faster manner and keeping pace with the Authority’s moves toward full digital transformation.

The Resolution also authorized the client to enter their bank account details through the technological applications approved by the Central Depository and Registry Company and certified by the Authority. This action enhances the integration of digital systems and simplifies procedures for investors, as part of the Authority’s efforts to expand the umbrella of financial inclusion to include the largest number of beneficiaries.

Regarding the methods for disbursing dividends or returns, the Authority permitted investors to choose the most suitable way to receive their financial entitlements through a variety of means, in response to technological developments and in reinforcement of digital transformation.

FRA Board of Directors authorized new means of payment, including transfers directly to a client’s Electronic Wallet (e-wallet) and the implementation of specific technological mechanisms and tools developed by the Central Depository and Registry Company (MCDR) and officially approved by the Authority. These new digital methods supplement the existing options: direct transfers to a client’s bank account, and the use of the designated ATM card for securities distributions. The Authority also retains the flexibility to approve future disbursement methods based on market proposals.

Furthermore, the Resolution granted a one-year grace period for existing clients to regularize their status and open bank accounts in accordance with the amendment’s provisions. During this grace period, the disbursement of dividends and returns shall continue in cash through the branches of the Central Depository and Registry Company (MCDR).

FRA asserts that this amendment marks a critical step in the evolution of the capital market system and the enhancement of financial transaction governance. The move clearly signals the Authority’s strategic focus on maximizing the benefits of Financial Technology (FinTech) and expanding digital services. This approach guarantees that shareholders and investors receive their entitlements quickly and efficiently, while upholding the highest standards of financial security. Furthermore, the decision is pivotal for advancing financial inclusion by integrating investor dealings with the official banking system. This measure fundamentally enhances transparency and significantly limits direct cash transactions.

FRA remains committed to continuously developing its legislative and regulatory framework to align with international best practices, thereby reinforcing confidence in the Egyptian financial markets and strengthening their capacity to attract both local and foreign investment.