CAIRO - Experts from the world's leading regulatory organisations, stock exchanges and financial firms gathered in Cairo last week for a two-day global conference on rebuilding the trust of investors. The high-profile event was hosted by the Egyptian Financial Services Authority (EFSA) and organised by the International Forum for Investor Education (IFIE) and the International Organisation of Securities Commissions (IOSCO), under the theme ‘Investor Education: Rebuilding the Trust of the Global Investing Public'. “The global markets want to rebuild. Following the market downturn and the tightening of the credit, it's more crucial now to regain the trust of investors,” Steven Joachim, the Chairman of IFIE, told the Egyptian Mail, adding that education was a major step towards regaining this trust. "This can't be done unless there is more transparency and an easier flow of information," he stressed. In Egypt, there have been a number of steps taken in the direction of investor education, ranging from training courses for university students to co-operation programmes especially tailored for investors. "The stock exchange is not gambling and we are not a casino," said the Chairman of the Egyptian Stock Exchange, Khaled Serry Siam, adding that, for investors to realise this, they must be well educated. "That's why we have to tell our investors about the rules and regulations, as well as giving them the exact facts, about the status of the economies." Siam noted that the number of investors and volume of investments in the Egyptian Stock Exchange was badly affected by the recent financial crunch and that they have been addressing this issue for a while now. The Egyptian economy grew 4.7 per cent in 2009, down from 7.2 per cent the previous year, as the global downturn hurt exports, although stimulus measures by local authorities helped avoid a bigger dent. Lack of trust, limited sources of information and the behaviour of some investors represent the major problems facing the Egyptian stock market, according to experts. The concern given to media and investor education in Egypt will be reflected in several projects, including a specialised TV channel that will be a door for more info about investments in Egypt. Yet, other opinions say that more information could be just as negative because it could reveal weaknesses in the market. Siam disagrees. "With enough disclosure and information, we are sure that there will be fewer risks in the Egyptian markets and investors will be much safer," he argued. For the Secretary-General of IOSCO, Greg Tanzer, disclosure is a key factor in rebuilding the trust of global investors in the global markets. "The global financial crisis was a backlash against unregulated segments of the market and unprofessional investors," Tenzer told the Mail on the sidelines of the conference. "Disclosing risks, disclosing facts and disclosing information is more important now than ever, in order to regain the trust that has been lost," he told the conferees.
