Financial Regulatory Authority Issues Decision No. 45 of 2026 to Strengthen Governance and Licensing Rules for Non-Banking Financial Firms
The Board of Directors of the Financial Regulatory Authority (FRA) has issued Decision No. 45 of 2026 to enhance licensing requirements and continuity controls for key positions within companies licensed to conduct non-banking financial activities. The move aims to strengthen corporate governance cycles, ensure technically qualified professionals occupy critical roles, and improve the efficiency and competitiveness of these institutions in delivering high-quality services.
The decision, adopted at the Board meeting held on February 9, 2026, under the chairmanship of Dr. Mohamed Farid prior to his appointment as Minister of Investment and Foreign Trade, forms part of the FRA’s broader strategy to modernize the regulatory and supervisory framework governing non-banking financial activities. The objective is to clarify responsibilities within companies, raise the efficiency of executive and administrative leadership, and reinforce market confidence.
The provisions apply to all companies operating in the non-banking financial sector. The decision specifies 14 key positions that must be included—depending on the company’s activity—in most organizational structures. These include: Managing Director, Internal Audit Manager, Risk Manager, Compliance Officer (Internal Controller), Chief Financial Officer, Credit Manager, Anti-Money Laundering and Counter-Terrorism Financing Officer, Regional Credit Risk Officer, Regional Credit Officer, Operations Manager, Branch Manager (Financing), Human Resources Officer, Legal Affairs Officer (for mortgage finance activity), and Information Systems Officer.
For companies licensed to conduct more than one activity, the decision allows the appointment of one individual to occupy the same key role across multiple activities, subject to FRA approval. If only one Managing Director is appointed, the company must designate an independent Executive Director for each additional activity to ensure balanced management and effective supervision.
Licenses for key positions will be granted for three years, renewable for similar terms, provided that licensing conditions continue to be met. The FRA may require renewal applicants to pass examinations or training courses as determined by the Authority.
The decision also obliges licensed individuals to notify the FRA within 15 days of contracting with a non-banking financial company, leaving employment and the reasons for doing so, transferring to another company, or upon issuance of any criminal judgment against them.
Companies are required to maintain a paper and/or electronic register containing details of licensed key position holders, including their addresses, licensing and renewal dates, employment periods, and any measures taken against them or criminal rulings issued.
In the event a key position becomes vacant, the company must notify the FRA and appoint a replacement within a maximum of three months. The Board must nominate a replacement Managing Director within the same period, subject to FRA interview approval, with possible extensions upon justified grounds.
The decision further mandates that companies establish a Board-approved succession plan for key positions and regularize their organizational structures within six months from the date the decision comes into force. The regulation becomes effective upon publication in the Egyptian Official Gazette.