Egypt's FRA Raises Audit Cap for Investment Fund External Auditors

Egypt's Financial Regulatory Authority (FRA) has increased the number of investment funds that a single external auditor can oversee from three to five, as the country's growing investment fund market places greater demand on audit capacity.

The decision, issued under the chairmanship of Islam Azzam, amends Article 7 (bis 2) of FRA Board Resolution No. 58 of 2018, which governs investment fund activities at banks and non-banking financial institutions. Auditors seeking to supervise more than five funds will require prior approval from the FRA under criteria set by the authority.

According to the FRA, the amendment is intended to provide greater operational flexibility for investment funds and external auditors while helping reduce costs as the sector continues to expand. The authority added that the change remains consistent with the Executive Regulations of the Capital Market Law and existing rules governing auditor independence and minimum audit requirements.

The FRA said the number of investment funds in Egypt has increased to around 190, up from 172 a year earlier, prompting requests from market participants to allow individual auditors to oversee more funds. The authority added that it is continuing to update its regulatory framework to improve market efficiency, strengthen investor protection and support the wider adoption of financial technology.

The expansion has also been reflected in the size of the market. During the first quarter of 2026, the net asset value of Egypt's investment funds reached approximately LE 410.6 billion, up from LE 316 billion in December 2025, driven by new fund launches, broader portfolio diversification and a growing investor base.