The Egypt Financial Regulatory Authority has issued two board decisions updating the framework for private insurance funds, including a revised model statute and new rules governing registration, amendment of bylaws, liquidation and removal from the authority’s registers, as part of implementation of the Unified Insurance Law. The revised model statute expands the definition of eligible founders to include any group linked by a single profession or job or by other social ties, and allows funds to admit members from outside the founding entity subject to approvals by the fund’s board, an extraordinary general assembly and a no-objection from the authority. Admission of external members must meet specified conditions, including member acceptance of the fund’s terms and benefits, actuarial support for the fund’s ability to collect contributions and fees, member undertakings to pay their share of any entity contributions where applicable, and a cap of 10% of total membership coming from outside the founding entity. Funds must also implement a comprehensive written internal control system, including separation of duties and defined internal audit responsibility, with an internal audit department required where fund assets are EGP 500 million or more and a suitably experienced internal audit officer required below that threshold; internal audit reporting is set on a quarterly basis with escalation for material issues. The decisions also permit general assembly meetings to be held electronically for the first time, with remote voting and system features designed to enable participation, questions and retrievable voting records, and broaden the eligibility of “experienced” board members beyond the insurance sector, while keeping the board size as an odd number between five and 11 members including two experienced members. The authority indicated it had conducted stakeholder dialogue ahead of issuing the decisions and will keep its dialogue process open to align on details of further executive decisions under the Unified Insurance Law before they are issued.
Egypt Financial Regulatory Authority 2025-01-22
Egypt Financial Regulatory Authority issues new rules for private insurance funds including electronic general assemblies and internal audit requirements based on EGP 500 million in assets
The Egypt Financial Regulatory Authority updated the framework for private insurance funds, introducing a revised model statute and new rules on registration, bylaw amendments, liquidation, and removal from registers under the Unified Insurance Law. Key changes include expanded eligibility for fund founders, conditions for admitting external members, and mandatory internal control systems with specific audit requirements. The decisions also allow electronic general assembly meetings and broaden board member eligibility beyond the insurance sector.