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The Financial Regulatory Authority (FRA), chaired by Dr. Islam Ezzam, has issued two circulars to consumer finance companies outlining new regulatory requirements related to the financing of precious metals and the disclosure of interest rates and administrative fees.

Under the first circular, consumer finance companies are prohibited from financing gold bars, gold jewelry, and bars and jewelry made of other precious metals, including silver and platinum. The FRA clarified that such products do not fall within the category of consumer goods and services eligible for financing under Egypt’s Consumer Finance Law No. 18 of 2020.

The Authority explained that gold bars and jewelry are considered investment products rather than consumer goods, and therefore should not be covered by consumer finance facilities. The measure is intended to ensure compliance with the regulatory framework governing the sector and support market stability and the soundness of financial transactions.

The second circular requires consumer finance companies to submit quarterly data to the FRA on interest rates and administrative fees applied to financing obtained from banks, as well as the average interest rates and administrative fees charged to customers.

The requirement will apply starting with data for 2025.

The FRA said the measure is part of its efforts to strengthen transparency and corporate governance, following similar procedures applied in the financing of micro, small and medium-sized enterprises (MSMEs).

The new requirements are also aimed at enhancing the efficiency of regulatory mechanisms while maintaining a balance between supporting the growth of the consumer finance sector and protecting market participants.