Egyptian financial control requires prior approval to conduct a negative examination of ignorance

 

The President of the General Authority for Financial Supervision of Egypt, Dr. Mohamed Omran, issued a regulatory decision to add a new paragraph to the text of Article 8 of the licensing controls and its continuation and the rules of ownership of shares of companies engaged in non-banking financial activities;

This is before moving forward to access the internal data and information of these companies to make a final investment decision on them, after the Board of Directors of the Authority agreed at its meeting on Sunday morning to amend resolution No. (53) for 2018 on licensing controls and its continuation and rules of ownership of shares of companies engaged in non-bank financial activities.

What the Board of Directors of the Authority agreed during the meeting, held through the application of the zoom, to extend the scope of the mechanism to decide on the differences raised between companies and their customers, known as dispute resolution committees, through the formation of two new committees to resolve disputes in the non-banking financial sector, the first is to consider complaints and topics before the Authority and raised between companies working in the field of securities and their clients for the first time in accordance with resolution 26 of 2022The second is to deal with complaints and issues before the Authority raised between companies engaged in non-bank finance and their clients, which include activities (mortgage finance, financing leasing, privatization, financing of smEs and micro-enterprises, and consumer finance) in accordance with Resolution 27 of 2022.

Imran said that the Board of Directors of the Authority in accordance with Law No. (10) of 2009 is the supreme authority dominating its affairs and conducting its affairs and developing and implementing the necessary policies to achieve its purposes and objectives, and since one of the purposes and objectives of the Authority is to work on the safety and stability of non-banking financial markets and on their organization and development and on the balance of the rights of their customers, the Board considered that expanding the scope of the mechanism to deal with the differences raised between companies engaged in non-banking financial activities and their customers would Stability within the activities under the control and supervision of the Authority, which has been adopted by the Board of Directors of the Authority in order to maximize the benefit.

The Chairman of the Authority stated that the follow-up to the performance of the Dispute Resolution Committee in insurance activity has resulted in the speed of adjudication of insurance disputes and ensuring that the insured and beneficiaries of insurance contracts obtain their rights without any delay, fairness and objectivity, and the important role of the significant practical experience of the members of the Dispute Resolution Committee and their ability to end the dispute without recourse to the judiciary, and in a way that saves expenses, effort and time for the parties to the dispute in court litigation, leading to the construction of a developed and competitive insurance market.

According to Imran, the new dispute resolution committees will consider the complaints and issues of dispute between the companies and their clients, and that the dispute resolution committees should decide on the dispute and issue a decision within a month of the date of the matter being submitted to the competent committee, fulfilling the necessary documents, and informing the parties to the dispute of the committee's decision within 15 days of its issuance.

The Chairman of the Commission also noted that the two committees would be formed by a decision of the Chairman of the Commission and chaired by one of his deputies; each committee should include experienced personalities chosen by the Chairman of the Commission, in addition to the membership of the President of the Federation on conflict presented in each activity, a technical secretariat for each committee to prepare the tasks and a statement of the work to be considered, and in any case when considering the topics before the Committee, the rules of avoidance of conflict of interest must be taken into account.

Dr. Omran stressed that the convening of the dispute resolution committees will only be valid in the presence of their members and their decisions are issued by a majority of those present, and in the case of equality, the side of which the President is likely, and both committees will have to use their respective committees to carry out their work from the staff of the Authority or one of the agencies under the control of the Authority without having a few voices in the decision- and the relevant department of the Authority must provide the competent committee with a prepared memorandum on the dispute, and the committees have the right to hear from any parties to the conflict or Any documents or memos from their point of view.