The Egypt Financial Regulatory Authority (FRA) published a clarification of its regulatory perimeter for investing in gold through investment funds, confirming it has approved only three gold-focused funds whose units are offered to the public. It also stressed that the FRA does not license gold traders to sell directly to citizens, and that direct trader-to-consumer dealings are governed by other laws rather than the capital markets framework. The FRA set out that its rules are based on Article 35 of the Capital Market Law No. 95 of 1992 and implementing decisions that regulate precious metals as a form of transferable securities when held via funds. Fund documentation must specify the types of metals permitted, targeted income, a minimum liquidity ratio, distribution policy, and related risk disclosures. Metals eligible for fund investment must be hallmarked, have clear title, and not be subject to dispute. Investment managers must buy and sell through gold trading firms recorded on an FRA register and must use metal custody providers recorded on a separate register, with custody providers subject to corporate form, approvals, security and technology requirements and mandated insurance cover. Trading firms recorded for fund transactions must have relevant external licences and at least two years’ experience, with paid-up capital of at least EGP 5 million, or alternatively paid-up capital of at least EGP 15 million and shareholder equity at least equal to paid-up capital, alongside specified membership or registration criteria. The FRA reported that around 200,000 investors currently hold about EGP 2.1bn through the three authorised gold funds, namely AZ–Gold (Azimut Asset Management), Ahly Financial Investments Management’s gold fund, and Beltone-Evolve’s gold fund. It said it has observed recent promotions encouraging direct gold purchases while implying that traders are FRA-licensed, urged investors to verify any claimed authorisation and report misuse of its name, and indicated legal action will be taken where appropriate.
Egypt Financial Regulatory Authority 2025-05-06
Egypt Financial Regulatory Authority confirms only three licensed gold investment funds and warns against misleading claims of licensing for direct gold sales
The Egypt Financial Regulatory Authority (FRA) clarified its regulatory perimeter for gold investments, approving only three public gold-focused funds and emphasizing it does not license gold traders for direct sales to citizens. The FRA outlined requirements for fund documentation, eligible metals, and investment managers, reporting that 200,000 investors hold EGP 2.1bn through authorized funds. It warned against misleading promotions suggesting FRA licensing for direct gold purchases and urged verification of authorizations.