FRA held its annual press conference on Tuesday to highlight its achievements in 2018 and the changes witnessed by the non-banking financial services sector during the Authority’s march to implement its comprehensive strategy for non-banking financial services 2018-2022. FRA’s strategy aims at creating an inclusive non-banking financial system and a catalyst for economic growth. Consequently, this will improve the competitiveness of the national economy and its attractiveness to foreign investments through enhancing levels of transparency and integrity and combating corruption. Besides, FRA’s strategy seeks to protect the rights of all parties dealing in non-banking financial markets and tries to strike a balance through practicing its regulatory role.
With the participation of economic journalists in national newspapers, magazines, electronic journals and in the presence of correspondents of satellite news channels, FRA’s annual press conference introduces the Authority’s efforts over the past 12 months. This period witnessed a comprehensive review of all legislative and regulatory measures for non-banking financial markets in accordance with the schedule of FRA’s comprehensive strategy for non-banking financial services 2018-2022. This was a real breakthrough in the legislative structure governing the activities of capital market, insurance, mortgage finance, private insurance funds, financial leasing, factoring and microfinance. That is besides focusing on developing legislations to be flexible and firm together. In addition, the legislations should outline the guidelines that the legislator wishes to protect, while leaving detailed matters to the Executive Regulations and decisions issued by FRA’s BOD. In this respect, more flexibility will be allowed without waiting for long years, as was the case upon the issuance of Law No. 17 of 2018 which was concerned with the amendment to some provisions of the Capital Market Law No. 95 of 1992.
Dr. Mohammed Omran, FRA’s Chairman confirmed that the efforts exerted by the Authority and its employees during 2018 have been crowned by the good results shown in the annual report of the World Bank Group “Doing Business” 2019. He added that Egypt achieved progress on the “Protecting Minority Investors indicator” where it was ranked the 72nd out of 190 countries jumping 9 places over the previous year and 61 places in the index since 2015. Also, he noted that this comes within the framework of the decisions issued by FRA to increase the scope of disclosure and transparency, enhance the efficiency of the organizational structure of corporate governance and protection of small shareholders. Egypt also jumped 30 places where it moved from the 90th to the 60th place on “the ease of getting credit” indicator as a result of launching and activating the Egyptian Collateral Registry (ECR).
Dr. Omran stated: “During the next phase, FRA is giving great importance to develop policies that are consistent with the principles of sustainable development. We have begun in 2018 to develop new tools so as to promote sustainable growth, such as developing green bonds to encourage the trend towards green finance in general”.
The press conference referred to the international recognition of FRA’s remarkable activity, its important and innovative role and its application to the best international standards in regulating and stabilizing the non-banking financial markets in Egypt, that is besides the Authority’s effective participation in the activities of relevant international organizations. It is worth mentioning that Egypt was re-elected to the IOSCO’s Board of Directors after winning the election as representative of the African Region and the Middle East. Egypt has also been a member of the IOPS Executive Committee for the coming period. In addition, Egypt has been elected as Chairman of Mediterranean partnership of securities regulators for the next two years. Moreover, FRA has won “The Most Innovative Capital Markets Regulator in Africa” for 2018; the award was presented by Africa Investor after a strong competition with a number of counterparts in African countries.