Decree Assigning Minister of Invest
Decree Assigning Minister of Investment Powers Over Non-Banking Financial Services
The Prime Minister has issued Decree No 1909 of 2014[1] delegating the Minister of Investment in exercising his authorities as the competent minister in the application of the provisions of Law No. 10 of 2009 for the Supervision over Non-Banking Financial Markets and Services.
Law No. 10 of 2009 established the Egyptian Financial Supervisory Authority ("EFSA") and merged the authorities responsible for supervising capital markets, insurance, and mortgage. It also granted EFSA the necessary powers and tools to supervise all non-banking financial markets and instruments. The law further determined that the "competent minister" in applying its provisions should be the Prime Minister, or any other minister designated by the Prime Minister to serve in that capacity. In the interest of clarity, ‘competent minister’ in Egyptian administrative law refers to the minister who would have the power to issue the Executive Regulations relating to the implementation of the law, in addition to representing EFSA in cabinet meetings as well as in front of Parliament. In this sense, the role of the ‘competent minister’ does not interfere with EFSA's independence since the latter remains fully responsible for market supervision, issuing rules and guidelines, and taking legal action against violators, without reference to any other party.
In practice, since Law No 10 was issued in 2009, the Prime Minister has assigned the Minister of Investment the role of competent minister in the application of its provisions, except during brief periods when the Prime Minister retained the responsibility for his own office. And it is in this context that this latest decree has been issued by the Prime Minister, confirming the status of the Minister of Investment as the competent minister for this law.
However, it is worth noting that the Prime Minister's new decree excludes from the powers of the Minister of Investment those powers relating to the Mortgage Finance Guarantee and Subsidy Fund which have been assigned to the Minister of Housing.
In our opinion, delegating the powers of the Prime Minister under Law 10/2009 is the correct measure. However, excluding from those powers supervision over the Mortgage Finance Guarantee and Subsidy Fund is ill-advised because it leads to the fragmentation of non-banking financial supervision which is better placed under one roof and within the purview of one minister.
[1] Prime Minister's Decree No. 1909/2014 delegating the Minister of Investment in exercising his authorities as the competent Minister in the application of the provisions of Law No. 10/2009 on the Supervision over Non-Banking Financial Markets and Services, Official Gazette, Issue No. 42 (bis), 22 October 2014.
The Prime Minister has issued Decree No 1909 of 2014[1] delegating the Minister of Investment in exercising his authorities as the competent minister in the application of the provisions of Law No. 10 of 2009 for the Supervision over Non-Banking Financial Markets and Services.
Law No. 10 of 2009 established the Egyptian Financial Supervisory Authority ("EFSA") and merged the authorities responsible for supervising capital markets, insurance, and mortgage. It also granted EFSA the necessary powers and tools to supervise all non-banking financial markets and instruments. The law further determined that the "competent minister" in applying its provisions should be the Prime Minister, or any other minister designated by the Prime Minister to serve in that capacity. In the interest of clarity, ‘competent minister’ in Egyptian administrative law refers to the minister who would have the power to issue the Executive Regulations relating to the implementation of the law, in addition to representing EFSA in cabinet meetings as well as in front of Parliament. In this sense, the role of the ‘competent minister’ does not interfere with EFSA's independence since the latter remains fully responsible for market supervision, issuing rules and guidelines, and taking legal action against violators, without reference to any other party.
In practice, since Law No 10 was issued in 2009, the Prime Minister has assigned the Minister of Investment the role of competent minister in the application of its provisions, except during brief periods when the Prime Minister retained the responsibility for his own office. And it is in this context that this latest decree has been issued by the Prime Minister, confirming the status of the Minister of Investment as the competent minister for this law.
However, it is worth noting that the Prime Minister's new decree excludes from the powers of the Minister of Investment those powers relating to the Mortgage Finance Guarantee and Subsidy Fund which have been assigned to the Minister of Housing.
In our opinion, delegating the powers of the Prime Minister under Law 10/2009 is the correct measure. However, excluding from those powers supervision over the Mortgage Finance Guarantee and Subsidy Fund is ill-advised because it leads to the fragmentation of non-banking financial supervision which is better placed under one roof and within the purview of one minister.
[1] Prime Minister's Decree No. 1909/2014 delegating the Minister of Investment in exercising his authorities as the competent Minister in the application of the provisions of Law No. 10/2009 on the Supervision over Non-Banking Financial Markets and Services, Official Gazette, Issue No. 42 (bis), 22 October 2014.