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Today, Sunday, the Financial Regulatory Authority announces the details of the first fund to invest in minerals in Egypt.
This came after the Financial Supervisory Authority issued several regulatory decisions that included controls for dealing with investment funds in minerals as one of the transferred financial values, and controls for registering and deleting providers of mineral preservation services as one of the financial values transferred in the authority’s record, and the controls for registration and deletion in the authority’s record for entities that investment funds must deal with. in the purchase and sale of minerals.
The Board of Directors of the Financial Regulatory Authority, headed by Dr. Mohamed Farid, issued several regulatory decisions regarding the dealing of investment funds in minerals as one of the transferred financial values, in light of what the provisions of Article (35) of the Capital Market Law allow the Board of Directors of the Authority to authorize the fund to deal in values. movable financial assets, including metals.
The first decision No. 50 of 2023 authorized the fund’s board of directors or the fund’s supervisory committee, without prejudice to their obligations in this regard, to seek the assistance of any of the mineral preservation services providers registered in the register prepared for that in the authority, and the investment manager is obligated to deal in the sale and purchase of minerals through the authorities registered in the register, and taking into account the controls set by the Authority in this regard, with the commitment of the Fund to provide the Authority with a copy of the contract concluded between it and the aforementioned service providers.
The second decision No. 51 of 2023 included the conditions that must be met by service providers for mineral preservation in terms of the legal form of its establishment, the availability of the minimum technical and technological requirements determined by the Authority, the conditions that must be met in the headquarters and safes in which the fund’s assets are kept in a secure manner, as well as the availability of systems and foundations of control. An internal and financial review and evidence that the company has a system for storing and retrieving customer instructions.
While the third Resolution No. 52 of 2023 included a number of conditions that must be met by the service provider, which contributes to increasing the efficiency of the investment process for this category of funds.
