The Egyptian Financial Supervisory
The Egyptian Financial Supervisory Authority Reports to the Prime Minister
On 9 September 2012, the President issued Decree No. 181 of 2012 (the “Decree”)[1] which states that the Prime Minister shall be responsible for enforcing the provisions of the law regulating the supervision of non-banking financial markets and instruments, Law No. 10 of 2009 (the “Law”).[2]
The Decree is one of importance because it means that the Egyptian Financial Supervisory Authority (“EFSA”) retains its relative autonomy, a requirement for being a financial supervisory authority. The Decree states the Prime Minister is the “competent minister” in amending the Executive Regulations of the Law, as well as being the supreme political authority representing EFSA whenever the cabinets meet.
It is worth noting that the Law (which established EFSA and merged within it the Egyptian Insurance Supervisory Authority, the Capital Market Authority, and the Mortgage Finance Authority) stipulated that the President shall issue a presidential decree determining the “competent minister”. This term being a legal one means any member of the cabinet including the prime minister, and when EFSA was established in 2009, a presidential decree was indeed issued determining this “competent minister” to be the Minister of Investment. This remained unchanged until March 2011 (following the January Revolution) when the Chairman of the Supreme Council for the Armed Forces issued a decree stating that the minister in charge of enforcing the provisions of the Law would from that time be the Prime Minister. The latest Decree confirms this position.
The fact that the Prime Minister is the competent minister is suitable because financial supervisory authorities require the highest degree of autonomy in decision making.
[1] Presidential Decree No. 181/2012 deciding that the Prime Minister shall be responsible for enforcing the provisions of the Law No. 10 of 2009 on the Supervision of Non-Banking Financial Markets and Instruments, Official Gazette, Issue No. 37 (bis) (b), 19 September 2012.
[2] Law No. 10 of 2009 on the Supervision of Non-Banking Financial Markets and Instruments, Official Gazette, Issue No. 9 (bis), 1 March 2009.
On 9 September 2012, the President issued Decree No. 181 of 2012 (the “Decree”)[1] which states that the Prime Minister shall be responsible for enforcing the provisions of the law regulating the supervision of non-banking financial markets and instruments, Law No. 10 of 2009 (the “Law”).[2]
The Decree is one of importance because it means that the Egyptian Financial Supervisory Authority (“EFSA”) retains its relative autonomy, a requirement for being a financial supervisory authority. The Decree states the Prime Minister is the “competent minister” in amending the Executive Regulations of the Law, as well as being the supreme political authority representing EFSA whenever the cabinets meet.
It is worth noting that the Law (which established EFSA and merged within it the Egyptian Insurance Supervisory Authority, the Capital Market Authority, and the Mortgage Finance Authority) stipulated that the President shall issue a presidential decree determining the “competent minister”. This term being a legal one means any member of the cabinet including the prime minister, and when EFSA was established in 2009, a presidential decree was indeed issued determining this “competent minister” to be the Minister of Investment. This remained unchanged until March 2011 (following the January Revolution) when the Chairman of the Supreme Council for the Armed Forces issued a decree stating that the minister in charge of enforcing the provisions of the Law would from that time be the Prime Minister. The latest Decree confirms this position.
The fact that the Prime Minister is the competent minister is suitable because financial supervisory authorities require the highest degree of autonomy in decision making.
[1] Presidential Decree No. 181/2012 deciding that the Prime Minister shall be responsible for enforcing the provisions of the Law No. 10 of 2009 on the Supervision of Non-Banking Financial Markets and Instruments, Official Gazette, Issue No. 37 (bis) (b), 19 September 2012.
[2] Law No. 10 of 2009 on the Supervision of Non-Banking Financial Markets and Instruments, Official Gazette, Issue No. 9 (bis), 1 March 2009.