The Egypt Financial Regulatory Authority (FRA) issued a decision setting mandatory governance, fit-and-proper and appointment rules for members of insurance and reinsurance company boards and for executive managers responsible for technical and key functions. For boards, the framework introduces integrity, qualification and independence criteria, including clean criminal and bankruptcy records over specified look-back periods, conflict-of-interest controls and disclosure of kinship ties up to the fourth degree. It also sets minimum experience expectations by role, restricts holding positions in competing boards and requires an FRA interview for chair and managing director candidates, with the option to interview other candidates remotely. Candidate dossiers must be submitted to the FRA 60 days before the general meeting, accepted names must be notified and published, and the new board composition must be reported to the FRA within 10 business days; loss of required conditions results in cessation of board membership. For executive and technical functions, insurers must maintain designated heads across core areas including underwriting, investment, claims, reinsurance, actuarial, compliance, internal audit, finance, risk, customer complaints, IT and digital transformation, AML/CFT, legal and human resources, with limited outsourcing of the actuarial and legal leads subject to FRA approval. Appointments require prior FRA approval for three years, renewable, with interviews mandated for several key roles; terminating certain control functions requires an FRA no-objection and vacancies must be filled within three months with prompt notification to the FRA. The decision also sets an enforcement ladder up to cancelling approvals with bans on appointment for one to five years, and applies board eligibility rules from the next board election or immediately for new joiners, gives firms 18 months from entry into force to align technical roles in their structures, and requires managing directors to disclose other board memberships within one month of entry into force.
Egypt Financial Regulatory Authority 2025-06-18
Egypt Financial Regulatory Authority issues fit and proper and approval requirements for insurance and reinsurance boards and key function holders
The Egypt Financial Regulatory Authority has mandated governance, fit-and-proper, and appointment rules for insurance and reinsurance company boards and executive managers. The framework includes integrity, qualification, and independence criteria, with specific requirements for board and executive roles, including FRA interviews and approval processes. The decision outlines enforcement measures and compliance timelines, affecting board eligibility and technical role alignment.