- FRA’s Chairman attends Africa/Middle-East Regional Committee (AMERC) meetings and sits in on the inaugural meeting of Mediterranean partnership of securities regulators.
Dr. Mohamed Farid – FRA’s Chairman and Vice Chairman of the IOSCO travelled to Greece for the 49th IOSCO Annual Meeting. He led the GEMC meeting, leveraging his position as chairman of the largest committee within the IOSCO
In addition, he attends the meeting of Africa/Middle-East Regional Committee (AMERC) and the inaugural meeting of Mediterranean partnership of securities regulators.
This week features a series of conferences, seminars, workshops and meetings focusing on capital markets and their role in economic growth. These events will discuss crucial topics like sustainable finance, fintech, carbon markets, and building expertise in the field.
The 49th IOSCO Annual Meeting, with the theme “Climate in the center of economy,” takes place in Athens this year, hosted by the Hellenic Capital Market Commission (HCMC).
Dr. Mohamed Farid – FRA’s Chairman emphasizes that attending the IOSCO Annual Meeting and meeting international regulators serves to solidify collaboration and build stronger global partnerships. This will promote the development of robust and sustainable financial markets, while also allowing Egypt to share its knowledge and experiences in this area.
While leading GEMC meeting, FRA’s Chairman discussed Egypt’s use of a voluntary carbon market to achieve sustainable financing goals.
Also, he points out that the groundwork has been laid for the first voluntary carbon market in Africa, with the completion of legal and operational frameworks.
He explains that in order to launch the first voluntary carbon market in Africa, Egypt started by updating Capital Markets Law no. 95 of 1992. Then, Ministerial decree no. 4664 of 2022 was issued allowing carbon credits to be traded as financial instruments.
Next, FRA formed the first committee to oversee and control carbon market and their terms of reference under the chairmanship of FRA’s Chairman and the membership of FRA , Ministry of Environment and EGX’s representatives and some experts in the field.
To speed up the launch of the carbon market, FRA sets carbon credit verification and certification standards for issuing voluntary carbon certificates. To expedite the launch of the carbon market, the Committee established a process for interested parties to apply for verification and certification roles. Following interviews to assess their qualifications, only three entities – both domestic and international – were selected for these crucial functions.
Dr. Farid announced listing and delisting rules of carbon credits on Egyptian Stock Exchanges along with criteria for local carbon registries. These registries will act as electronic databases tracking the issuance, ownership, and transfers of carbon credits. These rules will ensure adherence to established methodologies for carbon reduction projects. In addition, the Egyptian exchanges are working on developing trading and settlement rules for carbon credits.
Dr. Farid emphasized that finalizing trading and settlement rules is nearing completion. This is being done collaboratively with the Egyptian Stock Exchange.
Following a discussion on GEMC report regarding corporate sustainability disclosures, the meeting featured presentations from various stakeholders within the IOSCO. These included representatives from working groups focused on sustainable finance, monitoring the implementation of IOSCO’s standards, and the organization’s enhanced capacity-building program.
The Committee established two working groups: Sustainable Finance and Market Development. Additionally, they conducted a thorough review of training needs to enhance committee members’ capabilities.
Dr. Mohamed Farid, FRA’s Chairman, successfully secured his position as Chairman of the GEMC for a historic third consecutive term, lasting from 2024 to 2026.
Within the IOSCO, the GEMC is the heavyweight committee. It boasts over 75% of the organization’s membership, with 90 voting members and an additional 24 non-voting participants. In addition to the world’s most rapidly developing economies and ten members of the influential G20.
Beyond its focus on developing economies, the Committee works to improve stock market efficiency, establish best practices and foster information sharing among members. The committee also offers training programs and technical for its members.
Last November’s Cairo meetings of the Committee focused on how capital markets can best support economies in a changing world, considering both technological advancements and climate challenges. Additionally, the meetings offered programs for enhancing member expertise.
Dr. Farid also attended the meeting of Africa/Middle-East Regional Committee (AMERC). The discussions centered around progress made by Sustainable Finance Task Force (STF) on transition plans and their proposed action strategy. The AMERC Working Group on Sustainable Finance (WGSF) also presented its report.
The meeting also covered proposals from the AMERC Working Group on developing member states’ financial markets. Additionally, they reviewed a draft report on sustainable finance and discussed the anticipated level of risk associated with different financing activities.
Moreover, the meeting discussed findings of the Fintech Working Group. Also, committee members discussed recommendations presented in the AMERC online symposium on the latest advancements and current practices in financial technology.
Dr. Farid participated in the inaugural meeting of the Mediterranean partnership of securities regulators
Last modified: May 29, 2024