FRA amends non-banking financial institutions’ fiscal year

The Financial Regulatory Authority (FRA) has introduced new regulations aimed at overseeing the operations of non-banking financial institutions (NBFIs) under its supervision, with a major adjustment including of the fiscal year for private insurance funds, which will now begin on January 1 and end on December 31, starting from 2025.

This replaces the previous fiscal year, which began on July 1. The new regulations are within the FRA's efforts to implement guidelines outlined in the Unified Insurance Law, which came into effect in July 2024.

The new date aligns the fiscal year of private insurance funds with the practical application of prior regulations and resolves discrepancies between the fiscal years of Egyptian and foreign companies which previously caused delays in some procedures for companies over the past few years.

Under the new decision, private insurance funds are now required to prepare transitional financial statements for the period from July 1, 2024, to December 31, 2024.

Funds must also prepare their annual financial statements for the period from January 1 to December 31, 2025, along with comparative figures from the previous year.

These statements must comply with Egyptian accounting standards and be reviewed and approved by the fund's auditor and General Assembly.

In addition, Decision No. 273 of 2024 establishes the fiscal year for insurance and reinsurance companies.