Financial Regulatory Authority

Arab Republic of Egypt

Established in accordance with Law No. 10 of 2009, the Financial Regulatory Authority (FRA) is responsible for supervising and regulating non-banking financial markets and instruments, namely Capital Market, Insurance, Mortgage Finance, MSMEs, Financial Leasing, Factoring, Consumer Finance, Futures Exchanges, and Securitization. FRA plays a pivotal role in ensuring integrity and stability of non-banking financial institutions (NBFIs) and boosting their competitiveness to attract further investments. FRA is also in charge of reducing risks emanating from the lack of coordination, in addition to tackling woes arising from the adoption of different regulatory approaches.

FRA replaced the Egyptian Insurance Supervisory Authority (EISA), the Capital Market Authority (CMA), and the Mortgage Finance Authority (MFA). It applies the provisions of Law No. 10 of 1981 on Supervision and Control of Insurance, Capital Market Law No. 95 of 1992, Central Depository and Registry Law No. 93 of 2000, Mortgage Finance Law No. 148 of 2001, Law No. 201 of 2020 promulgating the amendment of the Microfinance Law No. 141 of 2014, as well as other relevant laws and decrees that are part of FRA's terms of reference. In addition, FRA is the competent authority implementing the provisions of Financial Leasing Law No. 95 of 1995.

Constitutional Mandate

Egypt's 2014 Constitution defines FRA as an autonomous regulatory agency that shall be consulted with respect to rules and regulations governing NBFIs:

Article (215)

Autonomous organizations and regulatory agencies shall be specified by Law. Such organizations and agencies shall have legal personality, and shall be technically, financially, and administratively independent. They shall be consulted with respect to the bills and regulations that relate to their fields of work. These bodies and agencies shall include the Central Bank, the Egyptian Financial Regulatory Authority (FRA), the Central Auditing Organization (CAO), and the Administrative Control Authority.

Article (221)

The Financial Regulatory Authority (FRA) shall be responsible for monitoring and supervising non-banking financial markets and instruments including capital markets, futures exchanges, insurance activities, mortgage finance, financial leasing, and factoring and securitization, as regulated by Law.

Vision

FRA aims to be one of key leading and most effective regulators of NBFIs regionally and globally.

Mission

FRA is working toward developing NBFIs and laying down legal and regulatory frameworks for FinTech use to promote financial inclusion and inclusive growth in order to provide access to sustainable finance, implement risk-based supervision, and adopt an early warning system against risks.

Role and Objectives

1

Market Stability

2

Investor Protection

3

Market Integrity

FRA's Units

The Financial Literacy Knowledge Hub

The Financial Services Institute (FSI)

The Financial Services Institute (FSI) was established by Presidential Decree No. 260 of July 2010 as the official training arm of the Financial Regulatory Authority (FRA), under Law No. 10 of 2009 governing non-banking financial markets. Its Board of Directors is chaired by His Excellency Dr. Mohamed Farid, Chairman of the FRA. FSI commenced operations in January 2011 and has since been dedicated to providing training across non-banking financial services, including Capital Market, Insurance, Mortgage Finance, Leasing, Microfinance, Factoring, Consumer Finance, and Movable Collaterals. FSI significantly contributes to advanced financial education by offering an internationally accredited Master's program in Financial Markets. This program was developed in collaboration with Spain's Instituto de Estudios Bursátiles (IEB) and is supported by the Financial Regulatory Authority (FRA). Furthermore, FSI enhances professional capabilities through a variety of soft skills programs focused on leadership and comprehensive capability development. FSI also maintains strategic protocols with several other prestigious European universities to enhance its academic offerings.

The Regional Center for Sustainable Finance (RCSF)

The Regional Center for Sustainable Finance (RCSF), under the umbrella of The Financial Services Institute (FSI), is a leading center dedicated to fostering robust and transparent non-banking financial markets in the MENA region. This is achieved by facilitating knowledge sharing, skills development, and technical training in sustainable finance, empowering the non-banking financial sector to direct capital flows towards low-carbon, climate-resilient assets and infrastructure.

The Egyptian Institute of Directors (EIoD)

The Egyptian Institute of Directors (EIOD) was established in 2003, and aims to promote and strengthen the principles of good corporate governance in Egypt and the Arab region. The institute focuses on developing the skills of board members and executives through specialized training programs, advisory services, and the publication of governance guidelines and tools. EIoD plays a vital role in enhancing corporate performance, transparency, and accountability, while also supporting a healthy investment climate by fostering trust between companies and investors. It serves as a leading platform for spreading governance culture and institutional capacity-building in line with international best practices.

The Egyptian Center for Arbitration and Settlement (ECAS)

The Egyptian Center for Arbitration and Settlement of Non-Banking Financial Disputes (ECAS) is the first arbitral institution in Egypt and the Middle East specialized in the resolution of non-banking financial disputes —particularly disputes involving partners, shareholders, or members of companies and entities operating within the sector. Established by Presidential Decree No. 335 of 2019, ECAS is dedicated to facilitating the efficient and effective resolution of disputes through arbitration, mediation, conciliation, and dispute boards. ECAS was established as a swift and effective forum that can cope with the dynamic and complicated nature of NBF sector.

Pillars of FRA Strategy (2023-2027)

Markets & Products Development

Developing Trading Markets & Institutional Investment
Advancing the development of Carbon Markets
Enhancing Primary Markets & Business Ecosystem
Strengthening the Insurance Sector
Promoting Non-Banking Finance
Introducing New Financing Instruments Under the Legislation Regulating Alternative Finance, in Collaboration with the Central Bank of Egypt (CBE).

Regulatory & Service Frameworks

Developing Regulatory & Service Frameworks of Non-Banking Financial Services
Supporting Market Stability
Apply international best Practice
Adoption of Early Warning & Preventative Supervision and Stress Testing measures

Insurance, Investment, and Financial Inclusion

Developing Fintech Solutions
1- Expand the use of digital solutions to boost financial inclusion.
2- Move ahead with updating IT infrastructure
Strengthening Communication to Enhance Financial Literacy
1- Develop means of financial literacy to raise awareness of all Egyptians of non-banking financial services.
2- Enhance Awareness Among Non-Banking Financial Stakeholders About Their Rights and Protections.
3- Increase Awareness Among Individuals on How to Maximize the Benefits of Various Non-Banking Financial Activities.

Upskilling Professionals & Capacity Building

Updating rules and regulations of licensing employees and senior personnel of NBFIs
Enhance the Role of Federations Representing Non-Banking Financial Activities.
Develop Comprehensive Training Programs for Stakeholders.
Strengthen the Capacity of Financial Regulatory Authority (FRA) Staff.

Contact Information

Smart Village, Buildings 136 and 137, Giza

Tel: +202-35345350

Official Website

https://fra.gov.eg