الهيئة العامة للرقابة المالية

• The new email service for reporting and verifying business models fielded more than 20 inquiries in its inaugural week.
• FRA took a strong stand against non-compliant entities by administratively closing Solve Holding for Consulting due to its illegal operations.
• FRA held over 10 meetings with various key entities to clarify the legislative and legal requirements for regulating their business models.
• As a direct result of FRA’s recent meetings, over five entities have signaled a strong intention to comply with the Capital Market Law regarding public offerings and investment share issuance.
• FRA has issued a “negative list” of entities violating non-bank financial laws to inform investors and the public.

Dr. Mohamed Farid – FRA Chairman:

• FRA will not hesitate to take decisive legal action against any entity engaged in unlicensed non-bank financial activities that contravene regulations.
• Our core objectives are to ensure market and institutional stability, safeguard those involved and concurrently promote development to enhance the sector’s vital role in the national economy.

In its pivotal regulatory and supervisory role, FRA is dedicated to regulate non-bank financial markets. This commitment ensures the protection of all stakeholders fosters stability and upholds the highest standards of integrity and transparency across all activities. In a proactive effort to enhance public awareness and caution non-compliant companies, FRA is now disclosing significant results and recent developments stemming from its warnings. Among these achievements, the Authority successfully addressed approximately 20 inquiries received from citizens across various governorates, providing comprehensive responses to each. Furthermore, FRA took decisive administrative action by closing Solve Holding for Consulting. This company was found, through thorough investigation, to be in violation of the Capital Market Law (Law No. 95 of 1992 and its executive regulations), specifically for engaging in portfolio formation and management activities without the requisite license from the Authority.

FRA recently issued stern warnings advising citizens against engaging with unlicensed entities on social media platforms that promote illegal investment or financing schemes. The Authority underscored the grave financial risks, including potential substantial losses and outright fraud, associated with transacting with such unregulated entities.

To further bolster transparency and safeguard stakeholders, FRA has innovatively developed an electronic link. This essential tool empowers individuals to instantly verify the licensing status of companies and entities promoting financing or investment activities, thereby ensuring that all dealings are conducted solely with officially licensed and regulated bodies.

The Authority has established a dedicated email address for individuals to report suspicious investment or financing solicitations that hint at fraud or deception. Complementing this, a separate email is available for companies seeking to verify their business models’ compliance with legislative and regulatory requirements, thereby ensuring their stability and service reliability.

In line with its ongoing field and regulatory oversight and following the release of its warnings, the Authority conducted a series of meetings with various companies and online platforms operating in this sector. The primary objective of these meetings was to review business models and guide these entities toward full adherence to existing regulatory and legal frameworks.

These regulatory efforts have yielded several positive outcomes:

• The Authority received approximately 20 inquiries from citizens through its electronic protection and awareness channels. This demonstrates a growing public awareness and a clear interest in engaging with reputable and licensed companies.
• Around five companies have initiated steps to regularize their status under the Capital Market Law concerning public offerings and the issuance of investment shares. This is a direct consequence of the meetings held by the Authority in response to its recent warnings. The Authority will closely monitor these regularization efforts and any non-compliance will result in necessary legal actions being taken and publicly announced to stakeholders.
• The Authority has published a “negative list” of entities identified through received complaints. These entities were found to be conducting non-bank financial activities in violation of the laws and regulations governing such services. This negative list will be updated periodically to reflect new developments.

Dr. Mohamed Farid, FRA Chairman affirmed, “We will not hesitate to take legal action against any entity operating unlicensed non-bank financial activities in violation of the law. The Authority is keenly focused on ensuring market and operational stability, while simultaneously protecting stakeholders’ rights and fostering development to enhance the non-bank financial sector’s crucial role in the national economy.”

Dr. Farid elaborated, “To foster an appealing investment climate in the non-bank financial sector, we are actively developing legislation and leveraging modern technology. This includes robust digital regulatory controls to secure stakeholder data. The significant progress in developing and enforcing these frameworks and their positive societal impact, highlights FRA’s steadfast commitment to uphold laws and regulations, thereby boosting public trust in non-bank financial markets and strengthen the national economy.

FRA affirms its continued diligent efforts to regulate non-bank financial markets. It will take all necessary legal and supervisory measures against non-compliant entities to protect investors’ rights and preserve the stability of financial markets.

For more information and to ensure compliance, please visit the following links:

• To view the comprehensive list of entities licensed to conduct non-bank financial activities (investment, non-bank financing, insurance), visit: https://fra.gov.eg/registration/

• For questions regarding legal and regulatory requirements for promoting stock subscriptions, contact: Inquiries@fra.gov.eg

• To report receiving solicitations from unlicensed entities, contact: whistleblowing@fra.gov.eg

• To view negative list of entities and online pages conducting non-bank financial activities in violation of the law, please visit the relevant link on FRA website: https://services.fra.gov.eg/alerts