الهيئة العامة للرقابة المالية

Financial Regulatory Authority (FRA) has introduced a comprehensive regulatory framework designed to govern the establishment, registration, and oversight of Insurance Auxiliary Bodies. This move strengthens the insurance ecosystem by modernizing regulatory oversight and optimizing support service efficiency.

Resolution No. 49 of 2026 was issued following a board meeting on February 9, chaired by Dr. Mohamed Farid, the current Minister of Investment and Foreign Trade and former Chairman of the FRA.

“Auxiliary bodies” are defined as insurance institutes, training centers, computer and information technology centers, and data exchange hubs established jointly by insurance companies.

The resolution mandates a comprehensive suite of documentation for the formation of auxiliary bodies, including certified minutes of the general assembly, a formal statement of purpose, a strategic business plan, and a five-year economic feasibility study. Additionally, applicants must submit a proposed organizational structure, professional profiles for the Board and CEO, and a detailed projection of financial resources.

The resolution strictly prohibits auxiliary bodies from conducting direct insurance or reinsurance operations, as well as any ancillary activities. Their operational scope is legally restricted to their approved charter. Furthermore, these entities must provide FRA with immediate notification of any statutory or data amendments and are mandated to maintain comprehensive digital or physical registries of all services rendered.

Under this resolution, all auxiliary entities must be registered in FRA’s specialized registry following Board approval and the settlement of prescribed registration fees. The registry serves as a central database, recording critical institutional data such as name, operational objectives, principal headquarters, and executive management.

The resolution defines clear operational boundaries: auxiliary bodies must remain dedicated to their primary purpose and are barred from conducting insurance or reinsurance business. Key obligations include the mandatory reporting of bylaw changes to FRA and the maintenance of rigorous record keeping – either digital or physical – for all services rendered.

Auxiliary bodies are subject to FRA’s supervision and oversight. The Authority may conduct inspections to verify documents and data. Furthermore, these entities must provide FRA with an annual report on their activities and financial position within three months of the end of the fiscal year, accompanied by financial statements audited in accordance with Egyptian Accounting Standards.

The resolution empowers FRA Chairman to strike an auxiliary body from the registry in specific cases, such as violating the provisions of this resolution or legislation governing insurance activities, in accordance with the established regulatory controls.

Existing auxiliary bodies are granted a six-month grace period to regularize their status in accordance with the new provisions. This transition window commences the day following the resolution’s publication in the Official Gazette and on FRA’s official website.

This resolution aims to establish a clear regulatory framework for auxiliary bodies within insurance sector, enhance service efficiency, ensure disciplined oversight, and contribute to higher levels of governance and stability within the Egyptian insurance market.