Your next EGX trade could cost you an extra five piastres to fund a new NBFI federation

REGULATION WATCH- Your next EGX trade could cost you an extra five piastres to fund a new NBFI federation. That’s the message from the Financial Regulatory Authority (FRA), which is mulling an EGP 0.05 tithe on any capital market transaction executed by a brokerage firm, with the proceeds being channeled to the operating budget of a new federation for non-bank financial companies that will soon be established, sources with knowledge of the matter tell Al Mal. The newly-issued Capital Markets Act includes provisions for the establishment of a federation for non-banking financial companies similar to the Federation of Egyptian Banks. The FRA’s policy consultation committee expects to present the list of regs for the establishment of the federation to the FRA board in a few weeks’ time, they add.