Daily News Egypt, 5 August 2021: The Chairperson of the Financial Regulatory Authority (FRA) has revealed a draft law regulating the finance brokerage activity in the micro, small, and medium enterprises (MSMEs) sector has been approved.
The law states a registry will be created for those wishing to engage in finance brokerage activities. The aim is to protect all parties, whether financing entities or individuals dealing with those entities, after they have demonstrated practical application of the provisions in Egypt Law No. 141/2014.
In order to protect the funds of the entities which are licensed to finance MSMEs, the authority’s board of directors has included a draft amendment to the law’s provisions which would criminalise using fraudulent methods for obtain financing from a company, association or civil institution licensed by the Authority to engage in the activity of MSMEs financing. The board of directors have also approved a proposal to amend some of the provisions of the law which regulate consumer finance activity, by creating a register with the authority to register those who wish to engage in paid sponsorship activity, and to protect the rights of entities which work in consumer finance.
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