Non-Banking Financial Regulation La
Non-Banking Financial Regulation Law
During the month of December 2008, the discussions for the draft Financial Regulator Law was concluded in the Shura Council (The Upper House of Parliament) first through the specialized Economic Committee, then by the plenary session. This means that the draft law is now ready to be discussed by the People's Assembly (The Lower House of Parliament) starting mid-January 2009.
The October 2008 Egypt Legal Update described the general map for financial regulation, whereby financial supervision is divided among the Central Bank of Egypt (with respect to banks), the Capital Market Authority (capital market, investment banks, securities firms and listed companies), the Egyptian Insurance Supervision Authority (for insurance companies and insurance brokers) and last but not least the Mortgage Finance Authority (for mortgage finance companies and related activities).
The proposed new law redraws this map by merging into one entity the three current non-banking financial regulators – i.e. the Capital Market Authority, the Insurance Supervision Authority and the Mortgage Finance Authority – while supervision over the banking system is left intact with the Central Bank as it currently stands. Moreover, it is worth noting that the creation of a single non-bank financial regulator will merge together three existing entities, but it will not affect the substantive laws of regulation currently applied by them, thus the substance of regulation will not be effected by the issuance of the new law.
During the month of December 2008, the discussions for the draft Financial Regulator Law was concluded in the Shura Council (The Upper House of Parliament) first through the specialized Economic Committee, then by the plenary session. This means that the draft law is now ready to be discussed by the People's Assembly (The Lower House of Parliament) starting mid-January 2009.
The October 2008 Egypt Legal Update described the general map for financial regulation, whereby financial supervision is divided among the Central Bank of Egypt (with respect to banks), the Capital Market Authority (capital market, investment banks, securities firms and listed companies), the Egyptian Insurance Supervision Authority (for insurance companies and insurance brokers) and last but not least the Mortgage Finance Authority (for mortgage finance companies and related activities).
The proposed new law redraws this map by merging into one entity the three current non-banking financial regulators – i.e. the Capital Market Authority, the Insurance Supervision Authority and the Mortgage Finance Authority – while supervision over the banking system is left intact with the Central Bank as it currently stands. Moreover, it is worth noting that the creation of a single non-bank financial regulator will merge together three existing entities, but it will not affect the substantive laws of regulation currently applied by them, thus the substance of regulation will not be effected by the issuance of the new law.