EGYPT Law and Practice Contributed by: Ibrahim Shehata, Hesham Kamel, Mohamed Abed and Hamza Shehata, Shehata & Partners Law Firm
Market-making activities must be conducted separately from other company operations, with independent accounts and records maintained for exchange-traded funds and securities mar - ket-making. Market maker activity was incorporated into Egypt’s capital market in 2007 via a Ministerial decree, expanding the services offered by capi - tal market companies. 7.3 Regulatory Distinction Between Funds and Dealers Unfortunately, no applicable information specific to this jurisdiction is available at present. 7.4 Regulation of Programmers and Programming Unfortunately, no applicable information specific to this jurisdiction is available at present. Egyptian law imposes strict regulations on insur - ance activities. According to Law No 155 of 2024, anyone engaging in insurance or reinsur - ance, directly or through intermediaries, must be licensed by the FRA. This includes fintech com - panies selling or marketing insurance products. The Non-Banking Fintech Law includes fintech in non-banking financial activities, including insurtech. In addition, the FRA issued two rel - evant decrees in 2023: • the first decree outlines the technological infrastructure requirements for entities operat - ing in non-banking financial activities, includ - ing insurtech (FRA Decree No 139 of 2023, dated 21 June 2023); and 8. Insurtech 8.1 Underwriting Processes
• the second decree requires non-banking financial activities to have a licence certifying that they have processes in place to verify digital identity, digital contracting and digital record-keeping (FRA Decree No 140 of 2023, dated 21 June 2023). Fintech companies, especially insurtechs, must adapt their underwriting to comply with these regulatory standards. This includes incorporat - ing secure digital platforms and ensuring trans - parency in data handling. Furthermore, technol - ogy such as AI and predictive analytics may be used to streamline underwriting, but it must align with the FRA’s requirements for fair treatment and data protection. 8.2 Treatment of Different Types of Insurance Please see 8.1 Underwriting Processes . 9. Regtech 9.1 Regulation of Regtech Providers Banking Fintech Sector The Banking Law empowers the CBE to active - ly drive the adoption of modern technology by licensed entities through various measures, including: • establishing a regulatory testing environment for regtech solutions; and • a temporary exemption from some of the licensing requirements stipulated in the Bank - ing Law for start-up companies and other entities that test regtech to provide innovative financial services. Non-Banking Fintech Sector The Non-Banking Fintech Law also provides a comprehensive framework for licensing fintech
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