Latest news with #CapitalMarketLawNo.95
Egypt Today
07-05-2025
- Business
- Egypt Today
FRA cautions citizens against fake investment platforms as ads for unlicensed entities rise
Cairo – May 7, 2025: Amid a surge in digital promotions for high-return investments, the Financial Regulatory Authority (FRA) has once again cautioned the public against interacting with unapproved individuals or businesses offering financial opportunities online. The regulator warned that these schemes—ranging from gold and cryptocurrency investments to real estate and securities—often bypass regulatory oversight and violate existing financial laws. The FRA noted a growing number of online ads and social media posts that entice citizens to commit funds to ventures lacking the necessary licenses. These unauthorized practices breach key provisions of Egyptian law, including the Capital Market Law No. 95 of 1992 and Law No. 146 of 1988, both of which strictly govern who can legally raise and manage investment capital. According to the authority, licensed gold investments in Egypt are strictly limited to three regulated funds. Any other method of gold-based investment, especially those bypassing the FRA's oversight, is deemed unlawful and potentially fraudulent. The FRA also issued a strong warning against dealing in virtual currencies. It emphasized that cryptocurrencies carry exceptionally high risk due to their speculative nature, susceptibility to financial crime, and lack of tangible backing. Engaging in or promoting crypto trading without a license is punishable by law, with penalties ranging from EGP 1 million to EGP 10 million or imprisonment. To empower consumers and reinforce transparency, the FRA has launched several initiatives. A newly updated section on its website now lists all licensed non-banking financial service providers. Additionally, the authority is compiling a public 'watchlist' of unauthorized operators identified through complaints and verified investigations. Citizens are encouraged to report any suspicious financial offers by sending supporting evidence to the FRA's official reporting email: whistleblowing@ The authority continues to take legal measures against platforms and individuals operating without approval. Thousands of Egyptians were affected by fake investment platform FBC back in February, with estimates of around $6 billion in losses. The platform, which promised financial rewards for completing tasks such as watching advertisements on YouTube, suddenly shut down, leaving countless users unable to access their funds.
Daily News Egypt
07-05-2025
- Business
- Daily News Egypt
Egypt's FRA warns against unlicensed financial investment schemes
Egypt's Financial Regulatory Authority (FRA) on Tuesday renewed its warning to all citizens against engaging with calls from individuals and entities, particularly via online platforms, to invest in financial products or deposit funds for investment purposes that violate Egyptian law. The authority emphasized that dealing with unlicensed entities exposes investors to significant risks and subjects the providers of such services to legal accountability. As part of its oversight of non-banking financial markets, the FRA stated it has observed an increase in online platforms and advertisements soliciting investments and offering financing without proper licensing. This includes entities promoting investments with promised returns without FRA approval or an accredited prospectus, which violates Capital Market Law No. 95 of 1992 and Law No. 146 of 1988 concerning companies receiving funds for investment. The FRA specifically cautioned against engaging with solicitations for virtual cryptocurrencies, highlighting extreme risks, their association with financial crimes, lack of material backing, and severe legal penalties under Egyptian law for unlicensed trading or promotion, including imprisonment and fines ranging from EGP 1m to EGP 10m. Similarly, the authority urged citizens to avoid unlicensed gold investment schemes, clarifying that legitimate gold investment is regulated exclusively through FRA-licensed investment fund units, with three such funds currently approved, rather than direct deals with unauthorized traders. To protect investors, the FRA is updating its website with a list of licensed non-bank financial entities and developing a 'negative list' of unauthorized operators identified through reports and verification. The FRA is pursuing legal action against these illicit platforms and encourages citizens to report suspicious solicitations via email with supporting evidence. The FRA emphasized that these awareness efforts aim to enhance financial literacy, protect investor rights, and maintain market stability. Companies planning public share offerings or seeking to receive funds for investment are advised to consult the FRA regarding legal and regulatory requirements beforehand.
Daily News Egypt
06-05-2025
- Business
- Daily News Egypt
200,000 Egyptians invest EGP 2.1bn in gold funds: FRA
Approximately 200,000 citizens have invested EGP 2.1bn in regulated gold investment funds, Egypt's Financial Regulatory Authority (FRA) said, emphasising it oversees investment in fund units, not direct gold trading. The FRA clarified that under Capital Market Law No. 95 of 1992, its role is to regulate how FRA-licensed investment managers offer gold investment fund units, not to license general precious metal trading. The authority warned against recent calls for direct gold purchases suggesting FRA licensing for metal traders, stating this is incorrect as its register is for companies dealing with investment managers, not the public. Direct gold trading falls under other laws, including Trade Law No. 17 of 1999 and Law No. 68 of 1976. The FRA urged citizens to be cautious, report misuse of its name by gold traders, and verify company licences. It advised investors buying physical gold directly to ensure they receive the metal. To protect investors, the FRA has established rules for gold investment funds, including requirements for hallmarked metals with clear ownership and the use of registered trading companies and custody providers. Currently, three FRA-approved gold investment funds hold these investments: AZ-Gold by Azimut Asset Management, an Al Ahly Financial Investments fund, and the Beltone-Evolve Gold Investment Fund. The regulatory framework, based on Capital Market Law Article 35 and FRA Decision No. 71 of 2021, allows investment funds to deal in metals. Funds must detail their investment policies, target returns, liquidity, profit distribution, and risks in their prospectuses, and insure assets with an FRA-licensed entity.
See - Sada Elbalad
06-05-2025
- Business
- See - Sada Elbalad
FRA Urges Citizens to Exercise Caution ,Report Violating Gold Companies
Waleed Farouk The Egyptian Financial Regulatory Authority (FRA) confirmed that it regulates investment in precious metals investment fund certificates, including gold, and not the direct buying and selling of gold. The Authority has established a comprehensive framework to protect investor rights, starting from licensing investment funds and their investment policies, to creating registries for gold traders and storage entities authorized to deal with investment managers. In a statement issued in response to inquiries about licenses granted to entities inviting citizens to invest in gold, the FRA clarified that only three funds have been licensed to invest in gold and have made their investment certificates available to the public. The FRA further explained that it has created registries for entities qualified to supply gold to investment funds, as well as separate registries for gold storage entities. These entities are not licensed by the FRA to sell gold to the public, and their listing serves only fund-related purposes. Currently, around 200,000 citizens are investing approximately EGP 2.1 billion through investment funds licensed by the FRA. The FRA emphasized that general laws such as the Commercial Law and the Precious Metals and Valuable Stones Control Law regulate the relationship between metal traders and investors or consumers. The FRA does not play a role in organizing this direct relationship. According to Article 35 of Capital Market Law No. 95 of 1992, the FRA has set regulations for investment managers dealing with approved precious metal trading companies. This regulation is specific to licensed investment managers operating through gold investment funds and does not serve as a general license for trading in precious metals. The Authority has recently observed calls to directly purchase gold with implications that certain metal trading companies are licensed by the FRA, which is false. The relevant registry only includes companies permitted to deal with investment managers, not with the general public. The public's dealings with gold traders are governed by Law No. 17 of 1999 (Commercial Law), Law No. 68 of 1976 (Precious Metals Control Law), and other relevant legislation—not the Capital Market Law, which only governs investment fund dealings in precious metals. The FRA urges citizens and investors to exercise caution and report any gold trading companies misusing the FRA's name. Legal action will be taken against such misuse, and the Authority stresses the importance of verifying any company's license claims directly through the FRA. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Egypt confirms denial of airspace access to US B-52 bombers Lifestyle Pistachio and Raspberry Cheesecake Domes Recipe News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Videos & Features Bouchra Dahlab Crowned Miss Arab World 2025 .. Reem Ganzoury Wins Miss Arab Africa Title (VIDEO) Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple
Zawya
29-04-2025
- Business
- Zawya
Egypt FRA greenlights $114mln Sharia-compliant sukuk issuances
Egypt's Financial Regulatory Authority (FRA) has approved two new Sharia-compliant sukuk (Islamic bond) issues with a combined value of EGP 5.8bn, as part of its efforts to diversify financing options. FRA Chairperson Mohamed Farid announced that the total value of sukuk approved by the authority since the beginning of 2025 has reached EGP 12.8bn. The recent approvals comprise two separate issuances. The first is an EGP 3bn Mudarabah (profit-sharing) sukuk issue by Bokra (formerly Rawasy for Securitization). These funds are intended to finance a project for Aman for Project Finance. The second approval is for a Musharakah (partnership) sukuk issue, the first by Al Ahly Sukuk. This issuance will finance a project for Bab Misr for Urban Development, a subsidiary of the Hassan Allam Construction group. Both sukuk issues will be offered through a private placement targeting financial institutions and financially solvent individuals. Mudarabah and Musharakah sukuk are types of Islamic bonds provided for under Egypt's Capital Market Law No. 95 of 1992. Companies utilise these instruments to finance expansion projects, and their returns are typically variable depending on the specifics of each issuance. Farid noted that the value of Sharia-compliant sukuk issues approved from the start of 2025 until now (EGP 12.8bn) matches the total value approved between the first such issuance in 2020 and the end of 2024 (also EGP 12.8bn). This brings the cumulative value of all approved sukuk issues since 2020 to EGP 25.7bn. Farid added that the total value of sukuk offered in the capital market has reached EGP 25.7bn. He also mentioned that the FRA is currently reviewing several potential new issues. The FRA stated that these approvals are part of its ongoing efforts to provide diverse financing and investment solutions catering to the needs of individuals and institutions for future expansions, aiming to contribute to economic activity. The authority highlighted its commitment to facilitating and expediting issuance procedures while ensuring the rights and balance of all parties involved and maintaining financial stability in the markets and non-banking financial institutions.
