The Central Bank of Egypt (CBE) has stressed that banks must obtain its prior approval before making any change to the investment policy of their affiliated investment funds. The requirement was set out in a circular dated 27 October 2026, issued under the rules governing banking activities and the oversight of bank-affiliated investment funds.

The CBE explained that the reminder comes after it noticed that some banks had changed the investment nature of some of their existing funds from what the CBE had approved when the funds were established. It added that the move aims to safeguard the soundness and stability of the banking sector and strengthen the confidence of its customers.

The circular, addressed to the chairpersons of banks' boards of directors and signed by Tarek El-Kholy, noted that such changes include, but are not limited to, the instruments a fund invests in or the investment ratios set for each of them, which may alter the nature of the fund.

The CBE stressed that its approval must be obtained before taking the necessary steps and before the change is approved by the Financial Regulatory Authority (FRA).

The circular draws on the CBE's supervisory rules on regulating bank-affiliated investment funds and on Article 41 of Capital Market Law No. 95 of 1992, which requires banks to obtain the CBE's approval to establish affiliated investment funds before they are licensed by the FRA.

The CBE asked banks to instruct the relevant departments to comply fully with these instructions.