The Financial Regulatory Authority (FRA) has introduced a new regulatory framework designed to govern the establishment, management and closure of branches operated by companies licensed to provide non-banking financial services.
The new rules, issued under Decision No. 44 of 2026, are intended to strengthen supervisory oversight across the sector while ensuring firms expand their operations responsibly, said Daily News Egypt.
Regulators say the framework is aimed at improving institutional discipline and increasing the efficiency of service delivery across different regions, while also ensuring that expansion plans do not introduce unnecessary operational or credit risks to the financial system.
Under the decision, companies licensed to conduct non-banking financial activities will no longer be permitted to operate from any premises outside their registered head office without first securing approval from the FRA. Firms must also formally register each branch in the Authority’s official register before conducting any activity.
The rule is designed to ensure that regulators can closely monitor expansion plans and confirm that firms have the necessary operational, administrative and credit infrastructure in place before launching new locations.
The framework introduces four categories of branches that companies may establish. Financing branches are authorised to provide the full range of licensed financial services, allowing firms to conduct their core operations through those locations. Marketing branches, however, are restricted to promotional activities and the collection of documentation, meaning they cannot grant finance or collect instalments from clients.
The framework also recognises mobile branches, which operate through movable units designed to expand access to financial services in different locations. In addition, seasonal branches may be set up temporarily for specific events or defined time periods. According to the regulator, this classification structure is intended to provide companies with operational flexibility while ensuring governance and risk controls remain firmly in place.
Companies will also be required to adopt an organisational structure for their branch networks that aligns with the approved geographic distribution of their operations. This includes implementing clear credit decision-making frameworks that define where financing approvals can be granted.
These frameworks may include centralised credit committees based at head office level, regional committees, branch-level committees or delegated authority models structured around specific products, financing thresholds and risk levels. Regulators say the approach aims to strike a balance between efficient service delivery and appropriate risk oversight.
The FRA has also introduced detailed documentation and procedural requirements for branch registration. Companies must provide evidence of board approval for the branch, specify its location and classification, and identify the appointed branch manager. Additional documentation includes an up-to-date commercial registry extract, proof of legal occupancy of the premises and the branch manager’s curriculum vitae.
Companies must also pay an inspection fee, while the FRA retains the authority to conduct on-site inspections before issuing a formal registration certificate.
The decision further requires firms to obtain prior approval before transferring, amending or closing any branch. In such cases, companies must implement measures to protect clients’ rights and ensure employees’ status is properly addressed.
Additional regulatory obligations apply to mobile and seasonal branches. Firms must submit detailed operating plans, outline procedures for securely handling client documentation and demonstrate that vehicles used for mobile branches are properly licensed and insured. They must also install tracking systems to allow regulators to monitor operations effectively.
Existing non-banking finance companies will be given up to six months from the decision’s effective date to align their branch networks with the new requirements.
The FRA confirmed that the framework will enter into force the day after it is published in Al-Waqa’i’ Al-Masriya and on the Authority’s official website, marking a significant step in strengthening governance and regulatory oversight across the non-bank financial services sector.
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