• EFSA presents its legislative agenda at “Parliamentary Papers” workshop
• Sherif Samy: The development of insurance legislation aims at providing more protection against risks and encouraging savings
• Sherif Samy: Accounting standards, real estate and financial valuation standards are new tools that will reduce corruption
Sherif Samy- EFSA’s Chairman stressed that the efforts exerted in preparing the latest legislative and regulatory amendments in various financial services aims at facilitating financing for large and small enterprises, providing protection against risks ,facilitating savings through insurance companies and private insurance funds and enhancing financial inclusion .
In a workshop entitled “Non-banking Financial Services Legislations” which was organized by the Egyptian Center For Economic Studies – ECES and attended by some members of the Parliament, experts and Dr. Ziad Bahaa Eldeen, former Deputy Prime Minister and former EFSA’s (speaker), EFSA’s Chairman presented the Authority’s legislative agenda and introduced an explanation of the new amendments to Capital Market Law which were recently approved by the Cabinet of Ministers and currently reviewed by the Council of State. He praised the efforts of Dr. Sahar Nasr, Minister of Investment and International Cooperation, in pushing these amendments which has been prepared by EFSA for more than a year. He hopes that the new law on finance leasing and factoring will soon be issued as well as amendments to the Executive Regulations of the Insurance Supervision and Control Law.
The workshop was managed by Dr. Abla Abdel Latif, Director of the Egyptian Center for Economic Studies. She stressed on the importance of economic legislations, especially in the field of non-banking financial services to achieve development and contribute to financing the activities of enterprises in order to raise growth rates.
Sherif Samy pointed out that non-banking financial tools which include conventional bonds, covered bonds, income bond, securitization, real estate finance and others provide financing for companies in addition to many economic projects that the government is trying to implement and can be financed away from the state’s budget. He noted that these include School Construction Projects and the development of industrial and logistics zone and rail transport lines.
EFSA’s Chairman stressed on the importance of issuing binding accounting, auditing, real estate evaluation and financial valuation standards and applying corporate governance rules which are all the most important tools to reduce corruption. He added that the Authority also keens to check the abidance of the companies under its supervision to the rules of combating money laundering, which prevent concealment of money resulting from crime or illegal source.
He pointed out that the legislative and regulatory development of the capital market in Egypt is appreciated by many international bodies and this was shown in the Doing Business Report which is issued by the International Finance Corporation of the World Bank. Egypt has advanced for the third year in protecting minority investors’ indicator, as it jumped eight places this year and 11 places last year. Also, The Global Competitiveness Index for 2016-2017 which was published by the World Economic Forum in October revealed Egypt’s progress in the general index by one place and it witnessed progress in the sub-index of capital market development by 8 places where it got 3.4 points instead of 3.2.
Sherif Samy pointed out that the Authority keens on enhancing financial inclusion through developing and supporting microfinance provided by companies, associations and civil institutions. He added that EFSA has adopted information technologies in launching micro-insurance. Also, he noted that the new draft law on financial leasing includes the introduction of micro financial leasing .