الهيئة العامة للرقابة المالية

• The meetings lasted for three days, providing a platform for discussions on various topics. The mission highlighted the efforts of digital transformation, the voluntary carbon market, the unified insurance law and stock market revitalization.
• Mohamed Farid delivered a keynote speech at Egypt Business Mission to the UK.
• The mission aimed to introduce the international business community to recent developments and reforms in the non-banking financial sector and attract increased investment.
• Ensuring the sustainability of the reforms’ impact was a central focus of the Authority’s discussions with relevant stakeholders.

Dr. Mohamed Farid – FRA Chairman participated in the Egyptian British Business Association’s door-knocking mission to London, where he highlighted the Authority’s efforts to develop the non-banking financial sector. The mission, attended by Ministers of Investment and Finance, private sector representatives, and key business leaders, featured several meetings with Arab and foreign investors over three days.

FRA Chairman discussed the Authority’s initiatives in digital transformation, the launch of Egypt’s first voluntary carbon market, the Unified Insurance Law and measures to enhance stock market liquidity and trading. These efforts aim to strengthen the role of the non-banking financial sector in the national economy, attract investment and ensure market stability and integrity while protecting consumer rights.

Dr. Farid delivered a keynote speech during the first day of Egypt Business Mission to the UK. His address aimed to introduce the international business community to the latest developments and reforms in Egypt’s non-banking financial sector and attracting potential investors.

The Egyptian British Business Association organizes an annual business mission to foster bilateral business relations, explore investment opportunities and promote economic cooperation between Egypt and the UK.

As a government representative, FRA Chairman participated in a panel discussion on the first day of the mission. The discussion focused on managing business relations between Egypt and the UK in the context of the EU’s Carbon Border Adjustment Mechanism (CBAM).

FRA Chairman highlighted the substantial assets and investments held by financial institutions and banks in the non-banking financial sector, reflecting the sector’s historical growth in parallel with a huge development in the sector globally and specifically in the uses of fintech.

Dr. Farid acknowledged that the rapid advancement of fintech presents new challenges for regulatory authorities.

These challenges include ensuring the protection of investors’ rights, maintaining market integrity, promoting fair treatment for all parties and safeguarding market stability amidst persistent risks.

Also, he emphasized that ensuring the sustainability of the reforms’ impact is a top priority for the Authority. To achieve this goal, FRA regularly engages with relevant stakeholders in the non-banking financial sector through discussions and workshops.

These interactions aim to ensure that the desired outcomes are realized and that the legislation and regulations effectively enhance market competitiveness and attract domestic and foreign investments.

Dr. Farid stressed that FRA prioritizes market integrity, stability, investors’ protection, digitization and procedural simplification in its actions. He emphasized that the Authority’s ongoing efforts to develop markets and introduce innovative products within the non-banking financial sector aim to provide attractive investment opportunities. By creating a conducive environment for investment and growth, the Authority seeks to foster the sector’s development.

Additionally, he stated that the Authority is continuously updating listing and delisting rules to align with market changes and developments. One significant amendment involves Article 38 which prohibits insider trading including board members, executives of listed companies , those who have access to information that is not available to others regardless their ownership percentage as well as major shareholders (owning 20% or more of company’s capital) . Insider trading is prohibited for five working days before and one day after the public disclosure of material and significant information, as outlined in the Capital Market Law’s executive regulations.

According to the new regulations, listed companies must establish clear procedures and internal systems for identifying blackout period.  In addition, companies must notify all relevant parties of the blackout period, these notifications must be sent via secure, verifiable, and authenticated electronic channels, such as company-generated emails. A copy of each notification should be simultaneously submitted to the Stock Exchange.

Companies must inform the Exchange about their notification procedures, including proof of a secure notification system. The Stock Exchange must publish the data on transactions that comply with this article after each trading session, based on the latest information provided by companies.

Dr. Farid added that Decree No. 181 of 2024 was issued to amend some provisions of listing and delisting rules with the aim of providing the greatest protection for investors and enhancing the levels of financial stability in non-bank financial markets and institutions.

According to this decree, companies subject to voluntary delisting  are required to purchase the shares of shareholders wishing to sell their shares at the highest of the following values:

• The fair value – determined by an independent financial advisor registered with the Authority;
• The average value of the shares over the three-month period before company’s general assembly is invited to meet to make a decision on delisting;

The decree also sets a specific time limit for shares in redemption account and delisting accounts and ensures the protection of other shareholders.

In addition, the decree stipulates that entities or companies wishing to voluntarily delist their securities must submit a request to the Authority to publish a disclosure report outlining the procedures for calling an extraordinary general meeting to consider the voluntary delisting. This request must be accompanied by supporting documents, including the minutes of the board meeting that approved the disclosure report detailing the reasons for the proposed delisting and the invitation to the extraordinary general meeting.

Moreover, the said decree allows the creation of redemption accounts for SPACs and delisting accounts for listed companies. These accounts will be temporary and will follow the rules set for treasury shares, except for the maximum limit of treasury shares.