Investment Minister Dalia Khorshid reviewed the legislative agenda and measures for non-banking financial services with Sherif Samy, the chairperson of Egyptian Financial Supervisory Authority (EFSA).
Samy proposed several draft bills, including a capital market law amendment, a draft law that governs EFSA independence and includes insurance disputes in the economic courts law, as well as amendments to insurance supervision regulations and control.
“The Ministry of Investment is keen to complete the financial services organisational structure to comply with international norms and standards and to provide new financial instruments in the Egyptian market to meet the needs of the investment environment and help provide funding for investment projects,” said Khorshid.
Khorshid added that the insurance industry plays a vital role in providing financial protection to individuals and investment projects against hazards, and is significantly contributing to providing capital for investment.
The insurance supervision law and regulation draft will include formulas for mutual guarantee insurance, micro insurance, and medical insurance, said Samy.
Moreover, the draft laws will include the development of insurance companies’ governance and amend the conditions under the relevant insurance professionals as well as modifying the calculation of some functional allocations to insurance companies, said Samy.
The capital law draft amendment will include the reorganisation of issuing and trading of bonds as well as regulating the exchange to increase the ability of dealers to protect themselves against the risk of price changes in the market.
In an effort to fight money laundering, the amendments include the abolition of bearer share and the creation of a consortium of companies working in the field of securities.
Khorshid assured the creation of an electronic record in Egypt for security rights of creditors, saying the move would represent a breakthrough in conducting grant funding for small- and medium-sized enterprises and reduce risk.
“Implementation of the safeguards system will improve Egypt’s position in the World Bank’s annual ‘Doing Business’ report,” said Khorshid.