Mohamed Farid, Chairperson of the Financial Regulatory Authority (FRA), continues his participation in the 49th annual conference of the International Organization of Securities Commissions (IOSCO), currently being held in Greece. The conference, themed “Climate as an Economic Target,” includes the annual board meeting and the signing of multilateral memorandums of understanding with representatives from Paraguay, India, South Africa, and Guernsey.
The events, which will run until the end of the week, feature meetings, seminars, workshops, and bilateral sessions focusing on key issues essential for developing and growing capital markets. Topics include sustainable finance, financial technology, carbon markets, and capacity building.
Farid noted that the meetings so far have facilitated the exchange of expertise on several critical issues affecting global capital markets, particularly from development and regulatory perspectives. Key topics include achieving greater financial stability, promoting sustainable financing activities, and establishing regulatory frameworks for emerging financial technologies relevant to capital markets.
During the IOSCO board meeting, a report on the progress of the Financial Stability Engagement Group was reviewed, and the Emerging Risks Committee provided a summary memo regarding private financing. The Fintech Task Force also presented updates on its work.
In another session on sustainable finance, the board discussed the Glasgow Financial Alliance for Net Zero (GFANZ) initiative, which brings together various financial system stakeholders to accelerate the transition to net-zero carbon emissions by 2050.
Farid praised the GFANZ’s model, highlighting its collaborative approach among capacity builders, providers, funders, and beneficiaries in climate finance. This collaboration aims to enhance accessibility, inclusiveness, technical assistance, training, knowledge exchange, and research, aligning with United Nations and G20 priorities, as well as the capacity-building functions of GFANZ’s regional networks.
Farid also emphasised the importance of sustainability disclosure standards issued by the International Sustainability Standards Board (ISSB). IOSCO has endorsed these standards, including IFRS S1, which covers general sustainability-related financial disclosures, and IFRS S2, which focuses on climate-related disclosures.
During the meeting, Farid showcased FRA’s efforts in various initiatives, legislative decisions, and the subsequent regulatory measures aimed at establishing Egypt’s first voluntary carbon market for trading carbon emission reduction certificates.
In collaboration with relevant stakeholders, he stated that the FRA is working to create a conducive environment for accelerating the voluntary carbon market to support global efforts in achieving carbon neutrality. He underscored the importance of enhancing capacity-building efforts, and providing technical assistance, training, and knowledge exchange necessary for climate finance.
Farid affirmed that discussions and exchanges of views within IOSCO enhance the role of capital markets in supporting economic development. Capital markets provide diverse investment and financing solutions for companies to finance growth and create jobs, considering all aspects of sustainability, governance, environmental impact, and related reporting standards.
The attendees also reviewed the Multilateral Memorandum of Understanding (MMoU) Review Group’s report to approve the compliance guide and necessary procedures to ensure the orderly implementation of recommendations approved at the June board meeting.
The Chair of the Finance and Audit Committee presented recommendations on the audited financial statements for 2023 to the board.
As the Chair of IOSCO’s Growth and Emerging Markets Committee (GEMC), Farid witnessed the signing of enhanced MMoUs with the Central Bank of Paraguay, the Financial Services Commission of Guernsey, the International Financial Services Centre Authority of India, and the Financial Sector Conduct Authority of South Africa.
Egypt, represented by Mohamed Farid, was elected as the Chair of the GEMC for the third consecutive term from 2024 to 2026. The GEMC is IOSCO’s largest committee, representing over 75% of its members, comprising 90 members and 24 non-voting associate members, including some of the world’s fastest-growing economies and ten G20 members.
IOSCO is the world’s most important organisation in setting the standards and regulations for financial markets, aiming to ensure fairness, transparency, efficiency, and risk management. IOSCO’s membership includes approximately 95% of the world’s securities market regulators.
