Approximately 200,000 citizens have invested EGP 2.1bn in regulated gold investment funds, Egypt's Financial Regulatory Authority (FRA) said, emphasising it oversees investment in fund units, not direct gold trading. The FRA clarified that under Capital Market Law No. 95 of 1992, its role is to regulate how FRA-licensed investment managers offer gold investment fund units, not to license general precious metal trading. The authority warned against recent calls for direct gold purchases suggesting FRA licensing for metal traders, stating this is incorrect as its register is for companies dealing with investment managers, not the public. Direct gold trading falls under other laws, including Trade Law No. 17 of 1999 and Law No. 68 of 1976. The FRA urged citizens to be cautious, report misuse of its name by gold traders, and verify company licences. It advised investors buying physical gold directly to ensure they receive the metal. To protect investors, the FRA has established rules for gold investment funds, including requirements for hallmarked metals with clear ownership and the use of registered trading companies and custody providers. Currently, three FRA-approved gold investment funds hold these investments: AZ-Gold by Azimut Asset Management, an Al Ahly Financial Investments fund, and the Beltone-Evolve Gold Investment Fund. The regulatory framework, based on Capital Market Law Article 35 and FRA Decision No. 71 of 2021, allows investment funds to deal in metals. Funds must detail their investment policies, target returns, liquidity, profit distribution, and risks in their prospectuses, and insure assets with an FRA-licensed entity.
