The Financial Regulatory Authority (FRA) has issued a resolution introducing a comprehensive regulatory framework designed to govern the establishment, registration, and oversight of insurance auxiliary bodies. This move strengthens the insurance ecosystem by modernising regulatory oversight and optimising support service efficiency.
“Auxiliary bodies” are defined as insurance institutes, training centres, computer and information technology centres and data exchange hubs established jointly by insurance companies.
The resolution mandates a comprehensive suite of documentation for the formation of auxiliary bodies, including certified minutes of the general assembly, a formal statement of purpose, a strategic business plan, and a five-year economic feasibility study. Additionally, applicants must submit a proposed organisational structure, professional profiles for the board and CEO, and a detailed projection of financial resources.
The resolution defines clear operational boundaries: auxiliary bodies must remain dedicated to their primary purpose and are barred from conducting insurance or reinsurance business. Their operational scope is legally restricted to their approved charter.
Under this resolution, all auxiliary entities must be registered in FRA’s specialised registry following board approval and the settlement of prescribed registration fees. The registry serves as a central database, recording critical institutional data such as name, operational objectives, principal headquarters, and executive management.
Furthermore, these entities must provide FRA with an annual report on their activities and financial position within three months of the end of the fiscal year, accompanied by financial statements audited in accordance with Egyptian Accounting Standards.
Existing auxiliary bodies are granted a six-month grace period to comply with the new provisions. This transition window commences the day following the resolution’s publication in the Official Gazette and on the FRA’s official website.