Mohamed Farid, Chairperson of the Financial Regulatory Authority (FRA), Vice Chair of the International Organization of Securities Commissions (IOSCO), and Chair of its Growth and Emerging Markets Committee (GEMC), began his visit to Madrid, Spain, to participate in IOSCO's Board of Directors meetings. He attended sessions on financial stability and sustainable finance, engaging in high-level discussions aimed at developing capital markets worldwide. Farid's participation included several key meetings that addressed critical issues for advancing capital markets and their role in economic development. Topics of discussion ranged from sustainable finance, financial technology, and carbon markets to capacity building and financial stability. He attended the Steering Committee of the Sustainable Finance Task Force (STF) and joined discussions on the 2025 action plan, which outlines regulatory priorities for promoting sustainable finance. At the financial stability meeting, members reviewed recent market developments, including the geopolitical challenges affecting market growth. Strategies to mitigate these risks and enhance market resilience and competitiveness were explored. Discussions also addressed liquidity and leverage risks in non-bank financial institutions, systemic risk monitoring, and ongoing updates to policies for financial stability.
Data challenges, operational resilience, and liquidity management in open-end capital funds were key topics. Additionally, priorities included enhancing the stability of short-term financing markets, improving bond market liquidity, and strengthening practices around data handling. Farid also participated in the Sustainable Finance Committee meeting, which highlighted goals for expanding the sustainable bonds market, assessing risks linked to environmental and social performance indicators, and strengthening carbon markets in cooperation with the World Bank. The committee discussed supporting the implementation of standards issued by the International Sustainability Standards Board (ISSB) and building knowledge on environmental and social rating techniques. Additionally, collaboration with international audit and ethics bodies, including the IAASB and IESBA, was highlighted. The committee also outlined potential new initiatives, such as transition financing and taxonomic classifications, along with frameworks for managing environmental and social risks, including safeguards against "greenwashing." Farid noted that these discussions facilitated valuable exchanges on pressing issues impacting capital markets globally. He highlighted the need for regulatory frameworks that foster financial stability, and sustainable finance, and adapt to financial technology advancements essential to capital markets. Farid emphasized FRA's commitment to green financing by promoting eco-friendly investments, including the issuance of green bonds. Efforts to broaden access to green financing now include standardizing green, social, and sustainability bonds, and FRA has established the required legislative framework to support sustainable practices within Egypt's non-banking financial sector. The FRA is also advancing regional cooperation through the Sustainable Finance Regional Hub, aiming to improve knowledge and capabilities around sustainable finance. This includes launching awareness programs, conducting research, and encouraging private-sector issuance of green and sustainability bonds. The FRA is also pushing forward with efforts to activate Egypt's voluntary carbon market, supporting Egypt's 2030 vision for sustainable development and the country's commitment to achieving carbon neutrality. Farid underscored the significance of a voluntary carbon market as an opportunity for the private sector to contribute to climate change mitigation. He noted that this market opens new avenues for sustainable finance, with adherence to governance standards ensuring transparency and integrity. The carbon market enables financial institutions to invest in carbon credits and green projects, facilitating capital allocation to sustainable initiatives. FRA is coordinating with all relevant stakeholders to accelerate the voluntary carbon market's development, supporting global carbon neutrality efforts. Farid highlighted the need to build capacities and provide technical assistance to finance climate action, emphasizing the critical role of capital markets in supporting economic growth while meeting sustainability, governance, and environmental standards aligned with international norms. Egypt, represented by Farid, was elected as the Chair of IOSCO's Growth and Emerging Markets Committee (GEMC) for the 2024–2026 term, marking Egypt's third consecutive term. The GEMC represents over 75% of IOSCO's membership, encompassing 90 members and 24 non-voting members, including some of the world's fastest-growing economies and ten G20 members. IOSCO, which includes regulators from 95% of the world's securities markets, sets standards that member nations strive to follow to ensure market fairness, transparency, efficiency, and risk management.
