Aggregated News From Investment Management Regulators

EFSA Allows practicing Financial Leasing, Factoring and Mortgage Finance in the same Company


Please complete the required fields.

• Sherif Samy: Granting license for one company to practice more than one financing activity aimed at enhancing efficiency and accessibility
• For the first time, EFSA regulates granting license for companies to practice more than one financing activity
• Sherif Samy:  Financial leasing, mortgage finance and factoring companies pumped 9 billion pounds in the first quarter of the year

Sherif Samy- EFSA’s Chairman revealed that EFSA issued certain rules that allow finance companies to practice more than one activity within the same company and this includes financial leasing, mortgage finance and factoring. He stressed that this trend aims at helping the companies, enhancing the efficiency of operations and encouraging the spread of non-banking financial services. He added that he hopes that such companies would be established in different regions of Egypt to be closer to small and medium enterprises which should increase the usage of such financial tools.

He pointed out that EFSA’s BOD decision no. (60) of 2017 defines the conditions that must be met and the procedures required for obtaining a license to  practice additional  financing activities.

Sherif Samy pointed out that the companies which are licensed to practice more than one activity must comply with a number of controls in this regard, the most important of which is that the company shall maintain separate accounts for each activity and the disclosures shall include the classification of the funds received by the company divided according to the activity for which it was allocated. He added that transactions with one client (natural person), his wife and minor children shall not exceed 10% of the property rights, nor should it exceed 20% if the client  is a legal person and 25% in the case of related parties.

He pointed out that the Authority has to decide on the company’s request within a period not exceeding thirty days from the date of the company’s fulfillment of all the requirements and conditions necessary for obtaining the license. He added that EFSA shall issue its decision in the light of a number of considerations. These considerations include the company’s financial position ,the efficiency of its management, contributions made by the company  to meet market’s needs through  offering new financing products or expanding in new geographical areas, in addition to  previous business or experience of key stakeholders in credit, banking and non-banking finance.

He noted that the number of companies which are currently active in the field of financial leasing is about 25 companies in addition to 10 mortgage finance companies and 7 factoring companies. It is worth mentioning that the total of non-banking financing offered to the market by these companies in the first quarter of this year exceeded 9 billion pounds.

Source link

Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

Recent Articles

SEC Charges Former Pharmaceutical Global IT Manager in $8 Million Insider Trading Scheme

Washington D.C., Sept. 17, 2021 — The Securities and Exchange Commission today announced insider trading charges against Dayakar R.

SEC Awards $11.5 Million to Two Whistleblowers

Washington D.C., Sept. 17, 2021 — The Securities and Exchange Commission today announced awards of approximately $11.

Issuance of Executive Order Imposing Sanctions on Certain Persons with Respect to the Humanitarian and Human Rights Crisis in Ethiopia; Ethiopia General Licenses and...

The President has signed a new Executive Order Imposing Sanctions on Certain Persons with Respect to the Humanitarian and Human Rights Crisis in Ethiopia.  OFAC has...

CVM suspends registration of 3 subsidized companies

This post was translated by Regulatory.News for informational purposes only; the content below is not an official translation from the regulator. See the content...

CFPB Report: Renters at Risk as COVID-19 Safety Net Ends

Stimulus Checks and Other Payment Relief Linked to Renters’ Financial Stability WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today released a report warning...

Get the latest from Regulatory.News in your inbox!