FRA suspends issuing insurance licenses for a year; new regs require auditors to be insured

REGULATION WATCH- FRA suspends issuing insurance licenses for a year; auditors will need to be insured: The Financial Regulatory Authority (FRA) has placed a one-year moratorium on issuing licenses for insurance and insurance brokers, a statement (pdf) by the authority said. Chairman Mohamed Omran said that current brokerage activity meets the market’s requirements and that the period will be used to ensure that companies comply with best practices. “There is no need to increase the number of companies operating in the sector by licensing new companies, as this may harm the industry,” he said.

Auditors will now also be required to be insured for the sum of EGP 100k, or twice their annual fees, whichever is greater, in order to register with the FRA, Youm7 reports. Auditors will need to submit the documents within six months of registering.