FRA’s BOD approves an amendment to licensing controls and procedures for banks and some Non-Banking Financial Company (NBFC) which undertake investment fund activities on their own or with others. The said amendment adds a new item that allows an auditor to audit the accounts of three different funds simultaneously at a maximum, by taking into account avoiding conflict of interests as determined by prospectus or information note, as the case may be.
It is worth mentioning that FRA has previously issued decision No. (58) of 2018 that specified licensing controls and procedures for banks and some Non-Banking Financial Company (NBFC) which undertake investment fund activities on their own or with others without requiring the establishment of a company for this purpose. The seventh article of the said decision stated that the Fund shall prepare independent financial statements in accordance with the Egyptian Accounting Standards and pursuant to the nature of its activity. The Fund’s accounts shall be audited by two independent auditors who are chosen from among those registered at FRA’s registry. Both auditors shall have access to the Fund’s registries and shall request any data or clarifications. In addition, both auditors shall adhere to the Egyptian Auditing Standards and shall prepare a report on auditing results. Also, both auditors shall prepare a joint report and in case of disagreement between them, the report shall clarify the differences and the views of each of them.
To review the decision (click here)