Egypt Financial Regulatory Authority streamlines SME and microfinance licensing by enabling online candidate interviews and allowing a single managing director

The Egypt Financial Regulatory Authority has issued a board decision updating licensing rules and procedures for firms seeking to conduct small and medium enterprise (SME) finance and combined SME and microenterprise finance, with the stated aim of speeding up authorisation processes. The changes broaden the use of electronic interviews for key appointments and adjust certain fit-and-proper and governance requirements. Under Decision No. 147 of 2025, required interviews may be conducted electronically for nominees to serve as board chair, managing director, and heads of the finance, credit, risk and internal audit functions. These candidates must still pass the Authority’s interview and meet the practical experience expectations referenced in the Authority’s 2020 decision, including at least five years of relevant experience in banking or non-banking finance and prior supervisory-level responsibility. The decision also permits exemptions (excluding the managing director) from the higher-education qualification requirement where a firm provides justifications accepted by the Authority, subject to at least seven years’ relevant experience and the individual not being an executive board member or serving on board committees. For firms undertaking both SME finance and microenterprise finance, the Authority will allow one managing director instead of appointing one for each activity, provided an executive manager is designated to be responsible for one of the two activities and meets the managing director conditions, including passing the interview.