الهيئة العامة للرقابة المالية

Dr. Islam Azzam,  FRA Chairman issued two directives to consumer finance companies restricting transactions in precious metal products and setting yield rates applied to all consumer finance products and services.

The first directive prohibits transactions involving gold bullion, gold jewelry and other precious metal products such as silver and platinum. FRA emphasized that these items do not fall under consumer goods and services eligible for financing under Consumer Finance Law No. 18 of 2020.

The decision rests on the premise that gold bullion and jewelry are investment vehicles rather than standard consumer items. Therefore, they fall outside the statutory framework governing consumer finance activities, a measure intended to preserve market stability and ensure transaction integrity.

The second directive obligates consumer finance companies to submit quarterly reports to FRA detailing interest rates and administrative fees on bank borrowings, alongside average yield rates and administrative charges levied on client loans. The directive requires submission of data starting from 2025.

FRA framed the measure as an effort to bolster transparency and corporate governance, aligning consumer finance oversight with standards applied to micro, small, and medium-sized enterprise (MSME) financing. The Authority noted that the framework aims to enhance regulatory efficiency while maintaining a balance between market expansion and consumer protection.