The Financial Regulatory Authority (FRA) added, on Tuesday, insurance policy premiums and membership fees for sports clubs to the list of services financed by consumer finance companies.
This includes companies that use commercial cards, which are subject to Law No 18 for 2020 regulating the activity of consumer financing, with the aim to facilitate financing their purchase.
Mohamed Omran, Chairperson of FRA, said the move comes in line with the Authority’s strategy to achieve integration between non-banking financial activities. It will also encourage the growth of insurance companies by making financing available to insurance clients through consumer finance companies, based on a study carried out by the Authority.
This activity is limited to making financing available to customers of insurance companies without including other insurance activities that complement them (including the activity of intermediation in insurance and insurance activities marketing).
Omran added that the decision also aims to encourage youth to join sports and social clubs, in light of the increasing value of membership fees and annual subscriptions to sports clubs.
The Law No 18 for 2020 was issued in March 2020 on the regulation of consumer finance activities in a manner that increases the purchasing power of citizens. The law also aims to increase operation rates in service projects, as well as increase the local demand.
