الهيئة العامة للرقابة المالية

Active participation in the FSEG and Sustainable Finance Committee to assess and improve programs and policies that enhance the role of capital markets.

Dr. Mohamed Farid – FRA Chairman :

• These meetings provide a platform for sharing knowledge to strengthen financial stability, sustainable finance, and to boost stock exchange competitiveness for sustainable development.
• Egypt’s Voluntary Carbon Market is a step forward in global efforts to achieve carbon neutrality.
• The Authority is promoting green finance to drive investment in sustainable projects.

Dr. Mohamed Farid, FRA Chairman and Vice Chair of the IOSCO Board and Chair of the Growth and Emerging Markets Committee (GEMC) commenced his visit to Madrid, Spain to participate in the IOSCO Board Meetings. His participation included engaging in meetings of the Financial Stability Engagement Group (FSEG) and the Sustainable Finance Committee.

Dr. Farid participated in numerous meetings on the sidelines of the IOSCO Board Meeting. These discussions focused on crucial issues related to the development and growth of capital markets, their role in economic development and topics such as sustainable finance, fintech, carbon markets, capacity building, and financial stability. Notably, he attended a steering committee meeting of the Sustainable Finance Committee and participated in a session discussing the committee’s 2025-work plan which outlined priorities aimed at enhancing the effectiveness of financial regulation in the context of sustainability.

Financial Stability Working Group meeting reviewed recent market developments, including the impact of global geopolitical events on development efforts. The group discussed strategies to mitigate these risks, enhance market resilience and achieve their objectives through appropriate policies and programs.

The meeting also addressed liquidity and leverage risks within non-bank financial institutions, as well as the monitoring of systemic risks associated with these institutions. The group prioritized macro prudential considerations and focused on data-related challenges and the persistent assessment of vulnerabilities faced by non-bank financial institutions, in addition to operational resilience.

The meeting agenda included a review of the Financial Stability Working Group’s priorities, focusing on the resilience of money market funds, short-term funding markets, open-end fund liquidity risk management, margin-related practices, and leverage ratios for non-bank financial institutions. The group also discussed data-related issues, bonds’ market liquidity and recent market developments.

On the other hand, Dr. Farid participated in the Sustainable Finance Committee’s meeting, discussing key initiatives such as analyzing sustainable bond market, assessing ESG risks, and collaborating with the World Bank on carbon markets. The Committee also plans to support the implementation of ISSB standards, share knowledge on ESG rating techniques, and strengthen communication with stakeholders, including the IAASB and IESBA. Future initiatives may include exploring transition finance, taxonomies and managing environmental and social risks in financial markets, including addressing greenwashing.

Dr. Mohamed Farid explained that the meetings focused on key issues related to global capital market development and regulation, including financial stability, sustainable finance and the impact of financial technology. The discussions aimed to coordinate efforts to enhance financial stability, promote sustainable finance, and develop appropriate regulatory frameworks to address the evolving landscape of financial technology.

Dr. Farid emphasized the Authority’s commitment to promoting green finance by developing financing policies and investing in environmentally friendly projects. This includes issuing green bonds and facilitating access to green finance through standardized definitions for green, social, and sustainability bonds. The Authority has also established the necessary regulatory framework to enhance sustainability in non-bank financial activities, enabling the development and offering of innovative financing tools and products to support environmental investments.

Additionally, he stressed on FRA’s keenness to develop cooperation through the Regional Center for Sustainable Finance to enhance capacities and awareness in sustainable finance. This includes launching awareness programs, conducting research and encouraging the private sector to issue green bonds and other sustainable finance instruments. The Authority is also working to activate the Voluntary Carbon Market and supporting Egypt’s efforts to achieve carbon neutrality aligned with Egypt’s 2030 vision for sustainable development.

Also, FRA’s Chairman highlighted the importance of the Voluntary Carbon Market, describing it as a step to support efforts to achieve carbon neutrality and an invitation for the private sector to engage in addressing climate change, as the market provides new investment opportunities and encourages the development of sustainable finance products. Moreover, he emphasized that the Voluntary Carbon Market adheres to strong governance standards, ensuring transparency and integrity. This aligns with the Authority’s multi-faceted approach, combining regulation, guidance and market development. The Authority has also mandated climate-related financial disclosures for non-bank financial institutions, in line with international TCFD standards, requiring reporting on climate-related risks, opportunities and governance structures.

FRA Chairman emphasized that carbon market offers financial institutions investment opportunities in carbon credits, green finance, and sustainable projects. To accelerate the development of the Voluntary Carbon Market and support global efforts to achieve carbon neutrality, the Authority is collaborating with stakeholders to create a conducive environment. This includes enhancing capacity-building efforts and providing technical assistance and training.

He also highlighted the importance of international cooperation through IOSCO in promoting sustainable finance and economic development. Capital markets, he noted, play a crucial role in providing financing solutions for businesses, while considering sustainability, governance, and environmental factors and preparing climate-related financial disclosures in accordance with the international standards.

Egypt, represented by Dr. Mohamed Farid, FRA Chairman, has been re-elected to lead the GEMC, the largest Committee within the IOSCO that represents over 75% of the IOSCO’s ordinary membership, for the 2024-2026 term.

The GEMC is the largest committee within IOSCO, comprising over 90 members and 24 associate members, including major emerging economies and G20 members.

IOSCO is the world’s leading international organization of securities regulators, with nearly 95% of securities regulators worldwide as members. It works to ensure fair, transparent, and efficient markets and effective risk management.