Arab Finance: The Central Bank of Egypt (CBE) has called on banks to seek its approval before amending the investment policies of their affiliated investment funds, according to a circulated letter addressed to the lenders' chairmen.

The adjustments include changes to eligible financial instruments or investment allocations that could alter a fund’s fundamental nature.

Banks must secure CBE’s approval before taking the necessary measures to have amendments ratified by the Financial Regulatory Authority (FRA).

The directive falls within the regulatory framework governing bank-sponsored investment funds and aligns with Article 41 of Capital Market Law No. 95 of 1992, which requires CBE's nod for the establishment of such funds before they are licensed by the FRA.

This comes as part of CBE’s ongoing supervisory efforts to ensure compliance with the regulatory framework, maintain the soundness and stability of the banking sector, and strengthen confidence among investors and other stakeholders.