The Egypt Financial Regulatory Authority issued Decision No. 269 of 2024 setting revised rules, controls and investment ratios for private insurance funds. The framework expands the permitted investment channels for funds operating under a defined benefit model and introduces sector-wide requirements on liquidity management and quarterly reporting. For defined benefit funds, the decision allows investment in metals investment fund units and other metal-backed financial instruments traded on Egyptian exchanges, subject to a cap of 10% of total fund assets (or the issuance) and limits per single investment fund. It also sets a 5% minimum and 20% maximum of total assets for investment in open-ended investment funds focused on shares listed on Egyptian exchanges, and caps direct investment in listed shares at 15% of total assets. Investments in venture capital and private equity funds in Egypt are permitted up to 5% of total assets. For defined contribution funds, the board must adopt an investment policy (directly or via a contracted investment manager) that cannot be implemented without prior non-objection from the Authority, and the policy must cover suitability parameters and member choice processes alongside tools enabling members or the sponsoring entity to view balances and net investment returns. All private insurance funds must keep uninvested current account balances within 5% of total assets, with a temporary increase allowed for up to 30 days where justified and accepted by the Authority. Funds must submit investment and asset-balance reports to the Authority every three months and have six months from the decision’s effective date to align with the minimum ratios set out in the new rules, while existing portfolios above the new maximum limits may remain but must not be increased after the decision enters into force.
Egypt Financial Regulatory Authority 2025-01-23
Egypt Financial Regulatory Authority sets new investment rules for private insurance funds, opening metals and private capital to defined benefit schemes
The Egypt Financial Regulatory Authority issued Decision No. 269 of 2024, revising rules for private insurance funds, including expanded investment channels and new liquidity management and reporting requirements. Defined benefit funds can invest in metals-backed instruments and open-ended funds with specific asset caps, while defined contribution funds require an Authority-approved investment policy. All funds must keep uninvested balances within 5% of total assets and submit quarterly reports.