الهيئة العامة للرقابة المالية

Dr. Mohamed Farid- FRA Chairman:

• The Authority is committed to balance innovation and risk management, while placing the protection of customer rights as its highest priority.
• New opportunities to maximize policyholder returns under a stringent regulatory framework.
• The resolution imposes transparency guidelines, including prior FRA approval and clear specifications for the precious metals, returns and required liquidity.
• The prior approval of the policyholder is a fundamental requirement before allocating any part of the insurance premium to metal investments.
• The acquisition, disposal and custody of the metals must be transacted exclusively through entities registered with the Authority. Furthermore, licensed management service companies must conduct their periodic valuation.
• The regulation mandates that companies disclose full details of their investments in precious metals within their annual and quarterly reports.
• The regulation mandates that companies use only officially stamped metals, with their value tied to accredited pricing benchmarks.

In a move that furthers the development of the Egyptian insurance sector, Financial Regulatory Authority (FRA), chaired by Dr. Mohamed Farid, has introduced an integrated and pioneering regulatory framework. This resolution opens the door for Life Insurance companies to offer clients the option of direct investment in precious metals (such as gold), ensuring all activities comply with secure and transparent frameworks.

Resolution no. 228 of 2025 is a key step in FRA’s strategic plan to diversify the portfolios of insurance companies and maximize returns, following series of resolutions.

The resolution formally stipulates that Life Insurance companies may directly invest in precious metals, primarily gold, when managing the investment portion of insurance policies or funds corresponding to funds accumulation contracts. This is contingent upon obtaining prior approval from the Authority.

Investment portion of insurance policies refers to the premium segment solely dedicated to investment, excluding funds used for insurance risk coverage. Funds accumulation contracts are insurer-offered savings and investment programs where the corresponding funds are the client premiums paid as per the contract terms.

Dr. Mohamed Farid, FRA Chairman affirmed that Resolution No. 228 of 2025 constitutes a major strategic shift in evolving Egypt’s savings and investment landscape. He stated that it opens vast new horizons for the insurance sector, enabling it to maximize policyholder returns within a stringent regulatory framework designed to guarantee transparency and client protection.

He added that this resolution reflects the Authority’s philosophy of proactive development of the non-banking financial system. Dr. Farid emphasized that FRA is not merely innovating new tools, but is also providing citizens with safe, highly desired investment options—such as gold—directly linked to their insurance policies.

FRA new resolution introduces stringent mandatory controls to ensure governance and transparency. These include approvals from boards of directors, transactions restricted to entities registered with the Authority and the use of independent valuation mechanisms to prevent investments from being made haphazardly.

FRA Chairman explained that the resolution achieves a balance between innovation and risk management, noting that protecting clients’ rights is a top priority. He stated that no funds will be directed toward metal investments without the explicit and conscious consent of the client, following a written and visual explanation of the advantages and risks, ensuring the client remains the “decision-maker.

The resolution also stipulates that company’s investment policy must specify the type of metals permitted, nature of targeted returns and liquidity ratio that must be maintained to meet its obligations.

The controls establish the precise process for the acquisition, disposal and custody of metals, mandating that all transactions be conducted exclusively through entities listed in the Authority’s register, pursuant to Board Resolution no. 52 of 2023. Furthermore, companies must submit contract copies and secure the Authority’s no-objection prior to execution.

 Companies are mandated to separate and segregate metals purchased from different vendors. They must also contract with an FRA-licensed Management Service Companies for the periodic, accurate valuation of metal investments, requiring prior submission of the contract and the Authority’s no-objection before engagement.

Furthermore, the Authority mandates stringent measures to safeguard client rights, requiring Life Insurance (Person Insurance and Funds Accumulation) companies to secure the explicit consent of the client before directing any portion of the insurance premium toward metal investments. Additionally, companies are obliged to fulfill their client awareness role by providing detailed information on the investment’s nature, advantages and risks via both a written disclosure document and a clear, simplified introductory video.

In adherence to Resolution No. 2 of 2025—concerning the rules, controls and ratios for investing insurance and reinsurance funds—the new resolution mandates comprehensive disclosure. Companies’ annual and quarterly reports must explicitly detail the funds invested in metals, their ratio to the total investment portfolio and the returns and costs attributed to each specific metal. This requirement is designed to establish robust governance principles in the insurance sector, fully aligning with Unified Insurance Law No. 155 of 2024.

The Authority’s Board resolution mandates full compliance with Resolution No. 71 of 2021, which governs the controls for investment funds dealing in metals as transferable financial assets. This framework sets strict conditions for the metals eligible for investment: they must be officially stamped by a competent authority, be transacted only through licensed manufacturers, traders or entities, possess confirmed ownership free of legal dispute and their valuation must adhere to an Authority-accredited price index.

FRA’s commitment to a modern, secure insurance system is reaffirmed by this resolution, which enables citizens to save and invest in real assets under strict regulatory supervision that ensures transparency and safeguarding rights.

FRA has initiated a comprehensive transformation in the insurance sector, evidenced by the issuance of approximately 47 regulatory resolutions since the Unified Insurance Law took effect. This strategic initiative aims to bolster market strength, increase flexibility and achieve insurance and financial inclusion.

Among the most prominent resolutions aimed at optimizing policyholder returns, FRA required Private Insurance Funds last February to allocate between 5% and 20% of their assets to open-ended funds focused on Egyptian exchange-listed equities.

The Authority also decided to require insurance companies to allocate funds to open-ended funds based on two minimum thresholds: 2.5% of the company’s paid-up capital and 5% of their free funds (equity).

The Authority is preparing to issue a resolution that will govern the investment rules and ratios for Governmental Insurance Funds’ assets. This upcoming mandate includes establishing a minimum of 5% allocation for investment in the stock exchange and open-ended funds.

On the other hand, the Authority plans to launch an e-platform for Actuarial Sciences scholarships in partnership with the AUC, alongside commencing leadership training courses for second-tier insurance managers, under the protocol between the Financial Services Institute and international bodies.