FRA Decree amendment on disclosure requirements exemption

user Youssry Saleh & Partners calender 22 Nov 2023 views 407 Views

According to the Capital Market Law No. 95 of the year 1992 any interested party may request access to the authority’s documents, and reports related to the company and to obtain certified data or copies thereof, in exchange for fifty pounds for each document or statement in the event of review, and one hundred pounds for each copy.

 A request to the Financial Regulatory Authority  “FRA” to review or obtain copies of documents or data shall be submitted to the authority, (accompanied by evidence of payment of the prescribed amount), stating the purpose for which it is intended to be used in the request. The authority may refuse the request if the broadcasting of the required data or images has caused damage to the company or infringement of the public interest or the interests of investors.

On August 9, 2023 The Financial Regulatory Authority (FRA) amended a provision of the decree no.100 of 2020 by issuing the decree no.167 of 2023 (The amendment) regarding the rules of governance for companies operating in the field of non-banking financial activities which includes insurance firms, currency exchange, etc.

This decree outlines a set of corporate governance rules, in which some strives to guarantee the disclosure and transparency Requirements of the non-banking financial activities companies, which required adhering:

  • The company shall disclose any material event that affects its activities and third parties dealing with the said companies to the authority;
  • Notify and provide the financial regulatory authority with the key corporate structure information including the shareholding structure for shareholders holding five percent (5%) or more of the shares threshold, its board of directors, key employees structure, attached to that a recent official transcript from the commercial registry in January of each year in addition to any amendment occurring to these statements within (five) working days;
  • The board of directors of the company shall disclose to the authority any modifications in the composition of the board or the committees arising therefrom immediately thereafter. Taking into account that the authority is provided with the records of the regular and extraordinary general assembly meetings and that of the meeting of the board of directors within 10 days from the date of its convening;
  • Provide the FRA with the annual financial statements along with the Auditor’s and the Board of Directors reports for at least 21 years prior to the assembly’s meeting and this should be submitted to the general assembly within three months of the end of the fiscal year.

The decree Amendment exempted moratorium companies from submitting the quarterly financial statements throughout the suspension period as an exception to the aforementioned disclosure requirements.