"Economic MPs" discusses the government's law on the reorganization of the General Authority for Control

Policy

The Chairman of the Commission: The law is a constitutional entitlement and the Commission requests its integration with the Law on Regulating Markets and Non-Banking

Chairman of the Authority: We will introduce a law for consumer finance to subject entities that sell by installments to control

Financial control: compulsory insurance for 2.8 million beneficiaries of small and medium enterprises

The Economic Affairs Committee of the House of Representatives discussed Tuesday, under the chairmanship of MP Ahmed Samir, the draft law submitted by the government, to issue the law of independence and re-organization of the General Authority for Financial Supervision.

Mohamed Omran, Chairman of the Egyptian Financial Supervisory Authority, presented the new draft law saying that it is a constitutional entitlement as defined in Article 216 of the Constitution, which stipulates that each law shall be issued to each independent body or regulatory body. Its members and all other functional positions, so as to ensure their neutrality and independence.

According to the constitutional text, the President of the Republic appoints the heads of these bodies and organs, after the approval of the House of Representatives by a majority of its members, for a period of four years renewable for one time, and none of them shall be relieved of his position except in cases specified by law.

Amran pointed out that Article 217 of the Constitution stipulated that the independent bodies and the regulatory bodies submit annual reports to the President of the Republic, the Council of Representatives and the Prime Minister prior to their issuance. The investigation authorities shall be informed of any evidence of violations. He pointed out that the proposed law provides that the financial supervision is an independent regulatory body that is affiliated to the President of the Republic. It enjoys technical, financial and administrative independence. It has legal personality. It also enjoys all the regulatory, organizational and executive powers necessary to exercise its functions and the independence and impartiality of its members. The Commission is the sole administrative body competent to establish and license companies operating in non-bank financial activities. The Authority shall assume the powers vested in the administrative body in respect of operating companies with securities or financial instruments in one of the Egyptian Stock Exchanges, and their opinions shall be taken in the draft laws relating to their field of operation.

He pointed out that the law regulates the appointment of the president of the body as stipulated by the constitution on the appointment of heads of independent bodies. The president of the board was appointed by a decision of the president of the republic with the rank of minister after the approval of the parliament by a majority of its members for a period of four years renewable for one time. He shall be relieved of his position except in cases prescribed by law.

The Committee requests the opinion of the Council of State

The Committee asked the State Council to provide it with the opinion of the law on the possibility of including the draft law submitted by the government to issue the law of independence and reorganization of the Financial Supervisory Authority, with Law No. 10 of 2009 regulating the supervision of markets and non-bank financial instruments.

This came after a number of members of the Committee objected to the multiplicity of laws in the light of the government's submission of a draft law to reorganize the Commission at a time when the law No. 10 of 2009 on the control of non-bank markets.

MP Ahmed Samir, the chairman of the committee, asked: "Why has not the existing law been amended so that there is unity in the legislation? Especially since the parliament has agreed in the last sessions to amend the law regulating the supervision of financial markets, which includes the amendment of the second paragraph of Article 7, Of the Authority's proceeds in favor of the State Treasury. "

He added that it was better to amend the law of the original body instead of submitting an independent draft law, which was followed by Dr. Mohamed Omran, Chairman of the General Authority for Financial Supervision, saying: "The Constitution provides for the independence of the bodies, Article 216 stipulates that be issued to each independent body or regulatory body A law defining its powers, its working system, guarantees of its independence and the necessary protection for its members and other functional conditions, so as to ensure their impartiality and independence. "

The "Amran" that the opinion of the Commission concluded that there is a law to translate that constitutional article.

MP Medhat Al-Sherif said: "Law No. 10 of 2009 includes all matters governing the work of the General Authority for Financial Supervision. The draft submitted by the government does not provide any new, but contributes to the creation of a legislative chaos, which is indispensable. Useful. "

"We are not missing new laws, our main problem is the existence of a forest of laws," MP Bassat Fahmi said.

MP Ahmad Samir pointed to the agreement of the members of the committee on the need for the independence of the Commission, following up: "We will face a problem if the law is rejected because of the lack of time that has not allowed the government to prepare an integrated law combining law No. 10 of 2009 and the law submitted by the government" 10 of 2009 to the draft law submitted by the Government on the independence of the Commission, which was approved by the members who attended the meeting.

While Advisor Mohamed Ibrahim, representative of the Council of State that he will review the legal opinion on the possibility of merging the new project and the existing law, to avoid any legal labyrinth.

Financial Control: Microfinance was the winning horse in 2018

Dr. Mohamed Omran, Chairman of the Egyptian Financial Supervisory Authority [EFSA], presented the Authority's activities. He said that the Authority set up a strategy for work until 2020 to deepen the success achieved in the recent period, pointing out that 2018 was a distinguished year for the Authority.

Amran added that the Authority monitors the activities of 5 sectors: mortgage finance, microfinance, insurance, capital market, leasing finance and crediting. "The board of directors of the Authority will discuss tomorrow the amendment of the draft law to finance micro-enterprises, allowing permission to companies that finance the activities of micro-small."

The head of the Financial Supervisory Authority [EFSA] said that financing micro projects is important and has a great impact on marginalized groups and factoring. He was the winning horse in the activities of the Authority during the past year, pointing out that the figures confirm that it was a sector that witnessed a boom in the past period. 7 billion and 200 million pounds by the end of 2017, jumped to 11 billion and 500 million pounds in 2018, an increase of 62%.

He pointed out that the financing of small and micro enterprises starts from 500 pounds to 100,000 pounds. The number of beneficiaries is 2.8 million Egyptian citizens with an average funding per capita of LE 3,200, while women hold 70% of the beneficiaries. "There are 9 companies and more than 290 NGOs working in the field of financing micro and small enterprises, which is working to spread good funding for this sector.

Financial control: compulsory insurance for 2.8 million beneficiaries of small and medium enterprises

Dr. Mohamed Omran, Chairman of the Egyptian Financial Supervisory Authority, said that 2018 was the year of insurance in accordance with the directives and presidential initiatives. He added that there is a tendency to insure all marginalized groups, and that there is a decision by the Authority to compulsory insurance on everyone who gets financing for small and medium enterprises For the customer and the Egyptian citizen.

Amran explained that the Authority will issue a compulsory insurance decision on everyone who gets funding, and there will be a period of 6 months to reconcile the conditions for these and will be insurance through the issuance of an insurance policy.

The head of the Egyptian Financial Supervisory Authority said that this would not be a burden on the citizen, but would be a protection for him. For example, he said: "Whoever gets the funding of 10,000 pounds will be insured annually at 42 pounds. This is the maximum, which means 360 piasters. the month".

He stressed that the mandatory insurance umbrella for beneficiaries of financing for small and medium enterprises will be under its umbrella 2 million and 800 thousand citizens, pointing out that the insurance sector includes 1.3% of the value of GDP, a small proportion in view of other countries.

Subjecting entities that sell by installments to control

Dr. Mohammed Omran said that the body is in the process of progress to the Council of Ministers draft consumer finance law.

He added that the project allows the Authority to license companies that sell by drip, as these entities provide a kind of funding unattended, pointing out that the draft law makes these entities subject to the control of the Financial Supervisory Authority.

He explained that the Constitution provides that the General Authority for Financial Supervision is specialized in non-bank financial activities, pointing out that consumer finance is a kind of non-bank financing.

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