According to Decision No. 1561 of 2022 issued by the FRA Chairman, the committee is responsible for the technical evaluation of registration, renewal, suspension, and removal requests for financial advisors submitted by the Central Department of Establishment and Licensing.
The committee conducts a personal interview with the candidate or the representative of the legal entity applying for registration to ensure compliance with the conditions and regulations issued by the FRA Board of Directors. The candidate must also pass the required technical tests to qualify for registration or to remain registered in the financial advisors’ registry.
This comprehensive process aligns with the provisions of FRA Board Decision No. 114 of 2018 and its amendments. This decision established a dedicated registry for financial advisory firms and licensed entities authorized to perform financial valuation and fair value studies, as mandated by the Capital Market Law, its executive regulations, and related decisions. Currently, this registry includes around 57 companies and entities.
Decision No. 114 of 2018 established four main conditions for companies and entities to join the Financial Regulatory Authority's (FRA) financial advisors' registry.
First, any company or entity must hold a license to conduct financial valuation and prepare fair value studies as per the Capital Market Law. For foreign entities seeking registration, they must also be overseen by a regulatory body similar to the FRA or the Central Bank of Egypt.
The second condition mandates that the company or entity secure professional indemnity insurance that aligns with the FRA's terms and the scope of their valuation work. However, foreign entities are exempt if their existing insurance policy already covers these professional liabilities.
Third, registered companies or entities must conduct this activity separately from any other operations and maintain independent accounts for it.
Finally, the fourth condition requires meeting the experience and professional competence standards outlined in the decision.
Beyond these four core requirements, other FRA decisions also apply. If a company or entity seeking registration has securities listed on the stock exchange, FRA Board Decision No. 82 of 2018 comes into play. Conversely, for companies or entities not listed on the Egyptian Exchange, FRA Board Decision No. 85 of 2018 applies. Both of these decisions specifically address conditions related to board membership