The Financial Regulatory Authority (FRA)
The Financial Regulatory Authority is an Egyptian Governmental Authority that is an integrated agency on its own. It was established in accordance with Law no. 10 of 2009 that was issued on Feb 25, 2009 to replace all of: the Egyptian Insurance Supervisory Authority (EISA), the Capital Market Authority (CMA), and the Mortgage Finance Authority (MFA). And then it became operationally effective on July 1, 2009.
Mainly, it plays a vital role in ensuring stability and solidity for every non-banking financial market. It is responsible of their controlling, supervision and regulation. These markets includes the Capital Market that we have previously talked about in an earlier post besides other transactions; such as Future Exchanges, Derivative Markets on financial assets, Commodities Insurance Activities, Mortgage Finance, Financial Leasing, Factoring, and Securitization. FRA also works on reducing risks resulting from the lack of coordination, in addition to addressing problems emanating from the presence of different regulatory methods.
The authority’s prime goal for is to maintain the development, stability and soundness of the non-banking financial markets while protecting the rights of stakeholders, investors & participants and issuing various means, systems, and rules that ensures efficiency and transparency of these markets.
The Financial Regulatory Authority is also responsible for licensing and inspecting entities operating in non-banking financial activities, regulating the dissemination of information related to non-banking financial markets while ensuring transparency and competitiveness of non-banking financial services through applying sound rules and regulations and taking necessary actions to curb market manipulation and fraud. This is in addition to the roles and terms of references mentioned in each of: the Supervision and Regulation of Insurance Law no. 10 of 1981, the Capital Market Law no. 95 of 1992, the Depository and Central registry Law no. 93 of 2000, the Mortgage Finance Law no. 148 of 2001, Microfinance Law no. 141 of 2014, and Financial Leasing and Factoring Law no. 176 of 2018.