The Financial Regulatory Authority ("FRA") has issued its decree No. 58 of 2022 on the conditions and procedures required for the establishment, licensing and approval of companies and entities wishing to engage in non-banking financial activities through fintech technologies.
In the light of the aforementioned decree, it is worth mentioning that The Financial Technology Law, No. 5 of 2022 ("the FinTech Law") Article 1 identified the non-banking financial activities as
small, medium and micro enterprise financing;
FRA has stipulated in its decree a few conditions for a company to obtain a license to engage in non-banking financial activities through fintech technologies that includes, inter alia:
- That juridical persons should be among the company’s founders with a percentage of no less than (50%) of the company’s share capital, and no less than (25%) of the company’s capital should be contributed by financial institutions.
- The managing director and the managers of key positions (including technology related positions) should pass the examinations/personal interviews determined by the FRA.
Written by: Ahmed Salah – Junior Associate