The Financial Regulatory Authority Issues Decision No. 44 of 2026 Introducing New Framework for Registration, Transfer and Closure of NBFI Branches

The Egyptian Financial Regulatory Authority (“FRA”) issued Decision No. 44 of 2026, establishing a comprehensive framework governing the registration, transfer, amendment and closure of branches of companies licensed to undertake non-banking financial activities (“NBFIs”) (the “Decision”). The Decision introduces enhanced regulatory oversight over branch operations and sets out procedural, governance and operational requirements applicable throughout the lifecycle of NBFI branches.

Key Requirements Under the Decision 

The Decision requires NBFIs to obtain prior FRA approval and complete registration in the designated branch registry before operating from any premises other than their registered head office. It also sets out the procedures and documentary requirements for branch registration, including requirements relating to branch classification, premises, management, supporting corporate approvals, payment of prescribed fees and FRA inspection rights prior to registration.

Branch Classifications 

The Decision introduces four categories of branches:

1.  Financing branches;
2. Marketing branches;
3. Mobile branches; and
4. Seasonal branches.

Each category is subject to specific operational parameters and permissible activities. In particular, the Decision imposes additional controls applicable to mobile and seasonal branches, reflecting the specific nature of their operations.

Transfer, Amendment and Closure of Branches

 The Decision also regulates the transfer, amendment and closure of branches, requiring prior FRA approval and imposing requirements designed to protect customers’ rights and ensure appropriate treatment of employees in connection with branch closure or relocation.

Governance and Operational Controls

The Decision introduces additional requirements relating to branch governance and operations, including organizational readiness, internal controls, credit decision-making frameworks and oversight arrangements.

In particular, the Decision requires NBFIs to establish an organizational structure for their branch network, taking into account the geographic distribution of branches approved by the FRA.

In addition, companies’ credit policies must clearly set out the framework for credit decision-making based on one of the following models:

1.  Centralized approval authority, whereby credit decisions are made by credit committees at the head office and regional committees;
2.  Decentralized approval authority, whereby credit decisions are made by credit committees at financing branches; or
3. Hybrid/distributed approval authority, whereby credit decision-making powers are allocated among head office, regional committees and branches based on financing thresholds, financing products and the company’s acceptable risk levels.

These requirements may require NBFIs to review and, where necessary, update their organizational structures, credit approval matrices, delegated authorities and risk governance frameworks to ensure alignment with the Decision.

Transitional Period 

Existing licensed entities have been granted a six-month grace period to regularize their branch status in accordance with the new requirements.

Conclusion 

The Decision reflects increased FRA focus on strengthening oversight of branch operations and establishing a more structured framework for the management of NBFI branch networks. In particular, the introduction of express requirements relating to branch organizational structures and credit approval frameworks signals heightened regulatory emphasis on governance, risk management and operational readiness.

The Decision may require licensed entities to undertake compliance reviews and implement operational adjustments to align with the new regime. NBFIs should consider assessing whether:

• Existing branches have been properly registered and classified under the new framework;
• Current or planned branch networks require regulatory approvals or updates;
• Internal governance, operational controls, credit policies and delegated authority frameworks align with the new requirements;
• Organizational structures appropriately reflect the geographic distribution of approved branches;
• Policies and procedures relating to branch transfer, relocation and closure should be updated; and
• Steps should be taken during the transitional period to ensure compliance within the prescribed timeframe.