The Financial Regulatory Authority (FRA), chaired by Islam Azzam, has issued a decision allowing external auditors to audit up to five investment funds simultaneously, up from the previous limit of three. Auditors wishing to audit more than five funds will be required to obtain prior approval from the FRA in accordance with the Authority’s prescribed criteria.
The decision amends Article 7 (bis 2) of FRA Board Resolution No. 58 of 2018, which regulates the rules, procedures and governance framework for investment fund activities conducted by banks and non-banking financial institutions.
Azzam said the amendment provides greater flexibility for both investment funds and external auditors while helping reduce operating costs amid the rapid expansion of the investment fund sector. He added that the decision is consistent with the Executive Regulations of the Capital Market Law and the FRA’s regulatory framework, which establishes independence standards for external auditors and specifies the minimum number of auditors required according to each fund’s legal structure.
He noted that the FRA’s supervisory oversight has identified significant growth in the investment fund market, with the number of funds rising to around 190, compared with 172 last year. The Authority has also received requests from market participants to allow individual auditors to review a larger number of investment funds.
Azzam said the decision reflects the FRA’s commitment to keeping pace with market developments and addressing practical challenges through the continuous modernisation of the regulatory framework governing non-banking financial markets. These efforts, he said, are intended to improve market efficiency, enhance the attractiveness of regulated financial activities and strengthen their contribution to supporting Egypt’s economic growth.
He added that the Authority remains committed to developing the investment fund sector in a way that promotes transparency, efficiency and investor protection, while encouraging innovation in financial products and services and expanding the use of financial technology solutions to meet the evolving needs of different categories of investors.
During the first quarter of 2026, the net asset value of Egypt’s investment funds rose to approximately EGP 410.6bn, compared with EGP 316bn in December 2025, driven by the launch of new funds, broader investment diversification and a growing investor base.
