الهيئة العامة للرقابة المالية

• The Steering Committee meeting addressed several key issues, including Capacity Building, Technical Assistance, enhancing Capital Market Development in emerging economies.
• The Authority was keen on completing and finalizing various legislative and regulatory frameworks necessary to support a comprehensive and integrated digital transformation.
• E-KYC procedures are considered a fundamental pillar of digital transformation in the non-banking financial sector.
• Eng. Sherif Yehia, Deputy Assistant FRA Chairman presented the Authority’s efforts to accelerate digitalization of non-banking financial services.
• Yehia:  FRA believes that technology goes beyond the automation of procedures to reach innovation and creativity, facilitating and accelerating transactions while ensuring their efficiency and integrity.

Dr. Mohamed Farid- FRA Chairman:

• Enhanced capabilities and technical cooperation are essential for emerging markets to build resilient, innovative capital markets that can withstand shocks.
• The 2026 work plan is dedicated to enhancing supervision and making markets more efficient, inclusive and sustainable.
• Integrating sustainability into the regulatory framework is a necessity to keep pace with the best international practices.

Dr. Mohammed Farid, FRA Chairman and Vice Chair of the IOSCO Board, chaired the Growth and Emerging Markets Committee (GEMC) meetings in Malta from November 18 to 20.

Dr. Farid presided over several significant meetings during the session including: GEMC Steering Committee meeting , GEMC General Meeting,  GEMC Network for the Adoption and Other Use of ISSB (International Sustainability Standards Board) Standards and the GEMC’s Market Development Working Group titled: “Building Resilient Capital Markets for the Future.”

During the GEMC Steering Committee meeting, Dr. Farid received a presentation from Rodrigo Buenaventura, IOSCO’s Secretary General regarding the Organization’s Work Plan for 2026. This plan focused on key issues pertinent to the GEMC member states, including capacity building, technical assistance and enhancing Capital Market development in emerging economies.

Dr. Farid commented on the importance of the plan, stating: “Developing capabilities and enhancing technical cooperation among emerging markets is not a luxury, but a necessity to ensure that our markets are resilient and capable of facing future challenges efficiently and effectively.” He added:” FRA affirms its commitment to collaborate with global regulatory bodies to bolster market stability, protect investors, and adopt best practices in Capital Market development.”

He pointed out that the 2026 Work Plan focus on Technology, Resilience and Cooperation is designed to enhance supervision quality, boost market efficiency, and deliver a safe, sustainable financial environment for stakeholders. It should be noted that during its meeting in Athens, the Committee endorsed the (NEXTGEN) project, which stands for “Nurturing Excellence through Growth, Education, and Networking.” This project was specifically designed to account for the diversity of the Committee’s membership and the varying stages of market development, tailoring its approach to categories such as emerging markets in their initial phases, advanced developing markets, mid-level emerging markets and markets nearing full development.

During the General Meeting of the Committee, FRA Chairman witnessed discussions concerning financial inclusion in emerging economies. In this session, Eng. Sherif Yehia, Deputy Assistant FRA Chairman, delivered a presentation on the efforts and plans adopted and implemented by the Authority concerning Financial Technology (FinTech), as well as the transition of electronic Know-Your-Customer (e-KYC) procedures from concept to reality.

Eng. Sherif Yehia elaborated that FRA was not content with merely setting a general framework for digital transformation but was keen on completing and finalizing the comprehensive and integrated legislative and regulatory frameworks necessary to support this transformation. This contributed to preparing the regulatory and legislative environment, allowing for the launch and development of innovative products and services. These innovations enable companies to expand their scope of business and improve their operational efficiency, while also allowing individuals to grow their savings and invest their funds easily and conveniently using various FinTech applications.

Eng. Yehia explained that this progress came within the framework of activating a package of legislative and regulatory resolutions that form the cornerstone of this development. Foremost among these is Law No. 5 of 2022 concerning the regulation and development of using Financial Technology (FinTech) in non-banking financial activities. Also crucial were FRA Board of Directors’ Resolutions No. 139, 140, and 141 of 2023, which played the largest role in establishing digital transformation and enhancing its capabilities within the non-banking financial sector.

He explained that the Financial Regulatory Authority (FRA) views enhanced “electronic Know-Your-Customer” (e-KYC) procedures as a fundamental pillar of digital transformation in the non-banking financial sector. FRA focused on establishing an integrated legislative and regulatory framework that facilitates the secure and reliable digital documentation and verification of customer identity and data. To ensure accuracy, the Authority adopted advanced technical standards covering digital verification of identity and transactions, electronic documentation and managing the customer lifecycle through swift and transparent digital channels. Crucially, these measures provide the highest levels of protection for sensitive data, aligning fully with the best global practices in this domain.

In light of these efforts, the Authority enabled companies operating in non-banking financial activities to implement the e-KYC system gradually and strategically. This measured approach is expanding the customer base and significantly facilitating access to services for both individuals and companies, completely eliminating the need for paper transactions or physical visits.

To support this shift, FRA established a registry for fintech service providers licensed to offer digital verification services. This action created a unified digital infrastructure that not only enhances market discipline and supports innovation but also raises the level of compliance across the sector.

Collectively, these steps contributed to increase operational efficiency, improve customer experience and boost investor confidence in the non-banking financial environment.

Dr. Farid presided over the GEMC Network meeting, which focused on the adoption and use of International Sustainability Standards Board (ISSB) standards – a fundamental effort to promote Environmental, Social and Governance (ESG) practices within capital markets. His participation highlighted FRA’s proactive experience in integrating sustainability into the Egyptian market’s regulatory framework, underscoring Egypt’s commitment to global best practices and enhancing market confidence.

During the session, Dr. Farid reviewed FRA’s initiatives to enhance sustainability which include integrating ESG standards into regulatory supervision mechanisms, developing sustainable financial products, and launching training programs for capacity building. He asserted: “Integrating sustainability into the regulatory framework is not an option; it is a necessity to ensure that Egypt’s financial markets are sustainable and trustworthy and that they reflect our commitment to the best global practices.” Furthermore, he stressed the importance of regional and international cooperation among regulators, adding that “Cooperation among emerging markets enables us to collectively confront environmental and social challenges and creates a safe and sustainable investment environment that supports long-term economic growth.

Dr. Farid pointed out that the adoption and integration of international sustainability standards establish a unified reference point for the regulatory framework. This critical alignment significantly enhances the flexibility and stability of markets while boosting the confidence of investors and stakeholders in the integrity and efficiency of the financial markets.