For the first time.. Egypt chairs the annual meeting of the largest committees of the International Organization of IOSCO

10:37 AM

Sunday 14 November 2021

Books – Mustafa Eid:

Dr. Mohamed Omran, Chairman of the Financial Supervisory Authority, chaired the annual meeting of the Growth and Emerging Markets Committee-GEMC, the largest committee of the International Organization of Financial Market Supervisory Authorities (IOSCO).

According to a statement from the Financial Supervisory Authority today, Sunday, Omran chaired the committee’s meeting for the first time in the history of the Egyptian capital market, after assuming the position of head of the committee by election in May 2021.

Omran called on his counterpart financial market observers to embrace experimental technology environments specialized in creating solutions in financial technology and accelerating the adoption of them and their applications in their markets.

He said that the Egyptian experience in confronting the consequences of the emerging Corona virus pandemic included many uses for technological innovations that greatly eased the precautionary measures and the policy of distancing that were launched to coexist with the effects of the pandemic after the world witnessed a major closure, and a financial shock that led to a state of tightening in financial conditions. .

He added that as a result of this shock, emerging markets witnessed the largest ever outflow of international investment portfolios, estimated at about $100 billion, or about 0.4% of their GDP, imposing stark challenges on their countries.

In front of more than 160 members of the committee and the participants in the annual meeting, Omran presented a summary of what was implemented in the committee’s report related to the uses of technological innovation in developing and emerging markets and issues related to financial technology.

This comes as a prelude to publishing the final report in early 2022, after taking into account the inclusion of comments from stakeholders and market partners about the regulatory authorities activating the use of these technological solutions to develop markets, according to the statement.

The Chairman of the Authority also reviewed the results of the preliminary analysis of the project of the study on the impact of “Covid-19”, which was conducted in 2020 to classify emerging markets in the category of markets with investment assets as an attractive investment destination for international investments looking for better investment returns.

The study project concluded that emerging markets were greatly affected by the pandemic, and that the size of the impact varies from one market to another, and put a big question mark about whether the current classification of emerging markets – as an investment asset class – will remain appropriate as a result of being affected by the role played by foreign investors in emerging markets.

The study project indicated that in order to strengthen the stock markets, it is necessary to consider taking precautionary measures to reduce the impact of fluctuations in the volume of foreign investments in emerging markets, and to encourage the participation of local investors in light of the rise of an emerging middle class among them, according to the statement.

According to Omran, the Egyptian Financial Supervisory Authority was enthusiastic and agreed to lead the study project, and a working group was formed that included representatives of the regulatory bodies in Brazil, China, Russia, Thailand and the UAE.

The meeting discussed the proposal submitted by the Russian Central Bank to hold a round table under the title “Roboadvising”, which are digital platforms that provide financial planning services based on algorithms without little human supervision.

Omran called on members to express their comments on the report prepared by the committee on the uses of technological innovation in developing and emerging markets before it is published at the end of the year.

The members of the Committee were also briefed on the organizational workshop held by the United Nations Conference on Trade and Development (UNCTAD) in cooperation with the Developing and Emerging Markets Committee (GEMC) last October, under the umbrella of the World Investment Forum, with the aim of enhancing confidence and efficiency in global markets by improving transparency. and reduce the risks of green washing.

The workshop also aimed to direct efforts to ensure that investors have complete, comprehensive, comparable and timely information to assist the investor in making his investment decisions, facilitate capital allocation and ultimately support the transition to more sustainable economic growth.

Next steps were also discussed with members in developing global standards in this field.

IOSCO is considered the most important organization in the world in setting the foundations and rules for the work of financial markets and the standards that each country seeks to abide by in order to ensure fairness, transparency and efficiency of markets and to manage the risks associated with them. According to the statement.

Egypt is one of the signatories to the multilateral memorandum of understanding adopted by IOSCO, which serves as a framework for international cooperation in the field of exchanging information related to combating violations of securities laws, and how to consult, cooperate and exchange information for the purpose of tightening control over securities markets.

Egypt held the membership of the organization’s board of directors for four consecutive terms, as it was elected for the first time in the organization’s history to the board of directors for the 2014-2016 session.

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