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The Board of Directors of the Financial Regulatory Authority (FRA), chaired by Dr. Islam Azzam, has issued a decree amending certain provisions of the professional rules and standards for registering and practicing insurance and reinsurance brokerage (Resolution No. 69 of 2025). The move is part of the Authority's ongoing efforts to upgrade regulatory frameworks, boost efficiency, enhance governance, and prevent conflicts of interest.

The decree eliminates a previous condition that required insurance and reinsurance brokerage firms to open at least two branches within three years of commencing operations as a prerequisite for incorporation and licensing.

This decision follows practical market evaluations revealing that physical geographical expansion is not always necessary for brokerage activities, particularly given technological advancements and diverse service delivery channels. Mandating geographical expansion within a specific timeframe was found to impose potential financial and administrative burdens that do not necessarily align with every company's needs or business model.

Stricter Governance on Executive Roles

Additionally, the amendment strikes out an article that previously allowed consulting insurance experts to assume executive management roles in insurance or reinsurance brokerage firms, effectively prohibiting them from holding such positions.

This change aligns with FRA Board Resolution No. 25 of 2026, which governs the rules and procedures for consulting insurance experts. The resolution stipulates that individuals seeking registration in the consulting experts' registry must not be listed in the FRA's approved insurance brokers registry. This measure is designed to prevent conflicts of interest and cement the separation of distinct roles within the insurance sector.

Dr. Islam Azzam stated that the new decree aims to consolidate governance policies, ensure a strict separation between brokerage and consulting activities, and eliminate potential conflicts of interest. He noted that this aligns seamlessly with the regulatory framework established under the Unified Insurance Law No. 155 of 2024.

He further explained that abolishing the mandatory branch expansion rule reflects the FRA's continuous engagement with the market and its responsiveness to practical realities. The amendment grants companies greater flexibility to manage their resources, determine expansion mechanisms, and deliver services according to client needs, without compromising essential regulatory oversight.

The FRA Chairman emphasized that regulatory updates consistently seek to strike a balance between encouraging market participants and maintaining efficient supervision. These efforts ensure the non-banking financial sector adapts to practical market developments, ultimately fostering industry prosperity and protecting stakeholder rights.

The decree is scheduled to be published in the Egyptian Gazette (Al-Waqai' al-Misriyya) and on the FRA's official website in the coming days, taking effect the day following its publication.