The head of the General Authority for Financial Supervision in Egypt, Mohamed Farid, said that the issuance of the general frameworks for regulating investment funds in minerals aims to diversify investment and savings channels for the masses of people, noting that the legislation regulating the activity of the capital market made available the so-called investment funds in movable values that include minerals, including gold and silver.
The Egyptian Financial Supervisory Authority announced the launch of the first fund to invest in gold.
He added, in an interview with Al-Arabiya, that regulating the frameworks for investment funds in transferable values took years of effort, not months or a few weeks, in terms of setting the general framework for investment managers in transferable value funds, including minerals, the processes for maintaining and storing this gold, and what standards are required of companies. Existing gold storage according to international standards.
He explained that the Financial Regulatory Authority issued a decision on a special register for such companies, and established a register for the investment managers of the companies allowed to deal with them in the sale and purchase of gold from the markets, so that the documents of investment funds in gold are always covered by quantities of gold that is purchased and stored with companies to keep it.
Farid stated that the timing of the fund’s launch in the market coincided with what is happening in the gold market or the currency exchange market, but its importance is absolute and not linked to specific times.
“This fund allows buying gold from extraction companies or gold purification refineries that export it in the form of bars, then comes the role of the trading company, and the intermediate operations to reach the final investor are limited and then increase efficiency, and all implementations that take place on gold produced from this refinery announce Their prices are on the screen of the Egyptian Stock Exchange, and this transparency allows contributing to the process of regulating the market and its discipline.” According to Farid.
He said that the fund is open and has no size according to what was stated in the subscription prospectus from the investment managers accredited by the Financial Regulatory Authority. Subscription and redemption in the fund is available to investors because it does not target a specific size.
He reaffirmed that launching the fund at this time is very important to allow the masses of investors who make purchases of quantities of gold, so they can buy the fund’s policies that are covered with quantities of gold stored with licensed companies and insured with group insurance policies from insurance companies, which represents safety for investors. In this area.