Auditors can now cover five investment funds at once as industry expands

Auditors can now review up to five investment funds at a time, up from three, with the Financial Regulatory Authority (FRA) able to approve a higher cap upon request, as per amendments to the watchdog's Decision No. 58 of 2018 — the rulebook governing how banks and non-bank financial firms run investment-fund activities.

The rationale: FRA Chairman Islam Azzam said the decision, which came in response to market calls, gives funds and auditors more room while cutting costs for the former. In practice, managers running multiple funds can retain fewer auditors to meet coverage rules, while FRA-qualified auditors can take on more funds without seeking clearance each time.

The bottleneck: The old three-fund cap left a shortage of FRA-registered auditors relative to the number of funds needing review, capital markets expert Mohamed Gaballah tells EnterpriseAM — a mismatch that was slowing file completion. The change is one of a string of reforms widening the scope of work for registered auditors, which an FRA source tells EnterpriseAM should improve review efficiency and speed up turnaround.

REMEMBER- The rule tweak follows a sharp expansion in the funds it governs. Egypt added 18 investment funds this year, reaching 190 from 172 at the end of 2025. Net asset value hit EGP 411 bn in 1Q 2026 — up roughly 30% in a single quarter, a jump the FRA attributed to a wave of new fund launches, more diverse mandates, and a growing investor base.