Egypt’s Financial Regulatory Authority has introduced a new regulatory framework governing the licensing and operation of branches belonging to companies engaged in non-banking financial activities.
The new decision is designed to strengthen oversight of expansion strategies adopted by non-banking finance companies while ensuring improved service delivery across different regions, said Daily News Egypt.
Regulators believe the framework will reinforce institutional discipline across the sector while also safeguarding market stability and protecting clients’ rights.
Under Decision No. 44 of 2026, companies operating in Egypt’s non-banking financial services sector will no longer be permitted to conduct activities outside their registered headquarters unless they obtain prior approval from the Financial Regulatory Authority (FRA). Any branch must also be formally registered in the regulator’s official register before operations can begin.
The rule reflects the FRA’s intention to subject expansion plans to supervisory scrutiny. By requiring formal authorisation for each branch location, the regulator aims to ensure that companies possess the necessary operational infrastructure, administrative processes and credit management capabilities before expanding their geographic footprint.
The framework also establishes four distinct categories of branches that companies can operate. Financing branches will be permitted to conduct the full scope of licensed financial activities. Marketing branches will have a more limited function, restricted to promotional work and document collection, and will not be allowed to grant finance or collect instalments.
Mobile branches will be allowed to operate through movable service units, while seasonal branches may be established to serve clients during specific events or for defined time periods. Regulators say the classification is intended to give companies operational flexibility while maintaining strong governance and oversight standards.
In addition to the structural classification of branches, the new rules place increased emphasis on internal governance and decision-making frameworks within financial institutions. Companies must design organisational structures that reflect the approved geographic distribution of their branch networks and ensure that credit decisions are made within clearly defined frameworks.
These frameworks may involve central credit committees based at head office level, regional committees, branch-level committees or delegated authorities. The approach should be calibrated according to product type, financing size and risk thresholds to ensure an appropriate balance between operational efficiency and oversight.
The FRA decision also introduces detailed procedural requirements for branch registration. Companies will need to submit documentation including board approval, details of the branch’s location and classification, identification of the branch manager, and a current commercial registry extract. Proof of legal occupancy of the premises, the manager’s curriculum vitae and payment of an inspection fee are also required.
Before granting approval, the FRA may conduct on-site inspections to verify that the branch meets regulatory standards and operational readiness requirements.
The new framework also applies to any future changes to branch operations. Companies must obtain prior approval from the Authority before transferring, amending or closing a branch. In such situations, firms will be required to take measures to protect clients’ rights and ensure the proper regularisation of employee status.
Additional compliance obligations apply specifically to mobile and seasonal branches. Companies will need to provide detailed operating plans outlining how services will be delivered and how client documentation will be securely handled and transferred. Mobile branches must also meet vehicle licensing and insurance requirements, while tracking systems must be installed to allow regulators to monitor operations effectively.
Existing non-banking finance companies have been granted a transitional period of up to six months to ensure their branch networks comply with the new framework. The decision will take effect on the day following its publication in Al-Waqa’i’ Al-Masriya and on the FRA’s official website.
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