الهيئة العامة للرقابة المالية

• The workshop, organized in partnership with the Egyptian Investment Management Association (EIMA), included over 15 presentations from key investment managers.
• The goal of the meeting was to drive faster compliance with FRA new regulation, which requires private insurance funds to allocate at least 5% of their assets to open-ended equity mutual funds to optimize returns for subscribers.

As part of the Financial Regulatory Authority’s (FRA) ongoing strategy to foster a supportive non-banking financial sector and enhance the integration of the capital market and insurance sectors, the Authority held an interactive workshop with the Egyptian Investment Management Association (EIMA). During the session, investment managers showed private insurance funds representatives how to allocate assets to open-end equity funds. This move aims to diversify their investment options and ultimately maximize returns for subscribers especially those nearing retirement.

The new requirement is rooted in FRA Board resolution No. 269 of 2024. This resolution obligates private insurance funds to invest between 5% (minimum) and 20% (maximum) of their total assets in open-end equity fund units to achieve greater investment diversification.

The move integrates with FRA’s broader goal of using new policies to enhance the governance and efficiency of private insurance fund investment. It also serves to increase the awareness of fund leaders about sophisticated investment mechanisms available in the Egyptian capital market, focusing on open-end equity funds.

The workshop attracted key figures, including Dr. Eslam Azzam EGX Chairman, Dr. Ahmed Abd Elaziz – Advisor to FRA Chairman and Supervisor of Insurance Activity, Mr. Mohamed Ayyad – Media Advisor and Dr. Mahmoud Samaha – Deputy Assistant to FRA Chairman. The event also featured strong participation from the Egyptian Investment Management Association (EIMA), including licensed investment managers and asset management companies’ representatives.

During the workshop, the Egyptian Investment Management Association (EIMA) collaborated with asset managers to deliver over 15 presentations. These sessions focused on practical methods for managing private insurance fund investments via open-end equity funds.

Private insurance funds are independent legal entities registered with the Financial Regulatory Authority (FRA). These schemes are created to provide essential insurance or social benefits – such as additional pensions, savings benefits or social and health coverage – to a group of employees who share a common affiliation.

The workshop presentations centered on key areas such as institutional investment mechanisms, asset and risk management and strategies to maximize investment returns. The focus was primarily on open-end equity funds. Furthermore, the sessions reviewed practical models for cooperation between private insurance funds and FRA-licensed investment managers, ensuring regulatory compliance and efficient deployment of members’ assets.

This workshop is one of a series of training events organized by FRA following the implementation of the Unified Insurance Law – the first comprehensive legislation for the sector. Through these initiatives, the Authority aims to boost the funds’ investment management capacity and provide diverse alternatives, ultimately helping them achieve higher returns that significantly improve citizens’ benefits upon reaching retirement age.

By the end of 2024, private insurance fund sector had grown to encompass 671 funds serving 4.6 million Egyptian subscribers. These funds offer a diverse range of coverage, including monthly pensions, insurance benefits, fellowship funds, savings and healthcare.