Regulatory Alerts2022-01-01
Capital Markets Authority Board Decision No. 196 of 2022
The Capital Markets Authority issued Board Decision No. 196 of 2022 to amend the existing disclosure framework for non-banking financial companies by exempting investment funds, securitization firms, and factoring entities from mandatory environmental, social, governance (ESG), and climate-related financial reporting. This exemption applies specifically to the disclosure requirements outlined in Article One of Decision No. 107 of 2021, streamlining regulatory compliance for these specialized financial activities. The amended decision was approved on December 28, 2022, and takes legal effect the day following its official publication in Al-Waqai' Al-Masriya and on the Authority's electronic website.
Al-Waqai' Al-Masriya – Issue 4 (Continued) dated January 4, 2023
2 Capital Markets Authority Board Decision No. (196) of 2022 dated December 28, 2022 amending Board Decision No. 107 of 2021 regarding the disclosure rules for companies operating in non-banking financial activities on environmental, social, and governance (ESG) sustainability practices and the financial impacts of climate change. The Board of Directors of the Capital Markets Authority; Having reviewed Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; And having reviewed Board Decision No. (107) of 2021 regarding the disclosure rules for companies operating in non-banking financial activities on environmental, social, and governance (ESG) sustainability practices and the financial impacts of climate change; And having approved this decision at its meeting held on December 28, 2022; has decided:
(Article One) An additional article, numbered (Article One bis), is added to the aforementioned Board Decision No. (107) of 2021, with the following text:
(Article One bis): Companies operating in any of the following activities are exempt from applying the provisions of Article One of this Decision: 1 - Investment funds activity (including exchange-traded index funds).
Al-Waqai' Al-Masriya – Issue 4 (Continued) dated January 4, 2023
3 2 - Securitization activity. 3 - Factoring activity.
(Article Two) This Decision shall be published in Al-Waqai' Al-Masriya and on the Authority's electronic website, and shall take effect from the day following its publication date in Al-Waqai' Al-Masriya. Chairman of the Board Capital Markets Authority Dr. Mohamed Fared Saleh