• Dr. Omran: The non-banking financial services sector contributes with its expertise in activating the principles of social responsibility
• Dr. Omran: The Capital Market Law provides sustainable financing mechanisms for charitable activities
Under the auspices of the Financial Regulatory Authority (FRA), Misr Elkheir Foundation has launched its first charitable investment fund in the presence of Dr. Sahar Nasr, Minister of Investment and International Cooperation, Dr. Ghada Wali, Minister of Social Solidarity and the Chairman of the board of trustees of Misr El Kheir Dr. Aly Gomaa.
Dr. Sahar Nasr, Minister of Investment and International Cooperation, said that the Ministry is prioritizing the provision of new mechanisms for investment, especially related to charitable work. She noted that the new initiative to launch five charitable investment funds will benefit from the steps of economic and legislative reform, as the new investment law stressed on promoting Corporate Social Responsibility (CSR) and social and charitable work with a tax deduction of 10% of the taxes imposed on companies. In addition, she stressed that the new initiative must take advantage of all facilities granted in the new legislations.
In her speech, Mrs. Ghada Wali, Minister of Social Solidarity, said that charitable investment funds will help charitable organizations and will provide them with the necessary funding instead of being involved in fundraising. She added that the new funds will contribute to the development of villages, municipalities and alms.
Dr. Mohamed Omran, FRA’s Chairman, revealed that the Authority was keen to sponsor the signing of the protocol of cooperation between Misr Elkheir and Mubasher Invest – subjected to FRA’s supervision – to launch “Takaful Fund” as the first fund among five new charitable investment funds that will be launched in succession to provide sustainable financing for a number of charitable activities of the Foundation and maximize the returns of its investments, to support the charitable programs of Misr Elkheir that are directed to the development of society and the Egyptian people. It is worth mention that these charitable programs reached up to 169 programs.
Dr. Ali Gomaa said that the new funds are the result of cooperation in the charitable work among civil society institutions, government and business sector. He added that there is hard and continuous work to deliver the right to those who deserve it.
FRA’s Chairman explained that introducing charitable investment funds will provide sustainable financing mechanism which is characterized by greater transparency in how funds are managed through the periodic disclosure of these funds and the publication of their financial statements and granting certificates holders the right to follow the performance of the fund and defining aspects of expenditure on the Fund’s purpose and changing it from time to time to another purposes they decide upon.
A long-awaited practical application is also underway after the Charity Sports Fund that shows the contribution of the non-banking financial services sector with its expertise in activating the principles of social responsibility and community development by benefiting from the Capital Market Law mechanisms and providing a pool to collect donations and funds allocated for charitable activities to be invested and the returns of its investments will support the charitable activities.
Dr. Omran added that in accordance with the amendments to the Executive Regulations of the Capital Market Law issued in mid-March 2018, the field was opened to invest funds in charitable investment funds in all types of investment funds except for the types determined by the Board of Directors of the Authority, in a new step to establish open charitable investment funds with specific controls for the redemption and transfer of ownership of its certificate. He added that FRA’s Board of Directors has been keen to provide flexibility in introducing these types of funds to suit the purpose for which they were established, especially in front of the charity funds, that is nearly two years after the decisions of the FRA’s Board of Directors that regulates the work of charitable funds, in a step to meet the constant and permanent need for these types of funds to increase the funds invested in them in order to be directed for social and charitable purposes.
Mr. Mohamed Kotb, Managing Director of Mubasher Invest said that funds’ investments will be limited to areas that serve the community, while the proceeds will be channeled to charity, ensuring the sustainability of charitable work and professionalism as the Funds’ management is based on experts that are specialized in money management, that is besides sustainability and governmental supervision on the charitable work.