Egypt’s Financial Regulatory Authority (FRA) has authorised securities brokerage firms to market their services through electronic payment applications and other digital platforms for the first time, according to a statement issued by the regulator on Saturday.

The move, approved by FRA Chairperson Mohamed Farid, aims to leverage the widespread use of financial technology to ease public access to capital market services directly through mobile phones. Farid stated that the decision integrates technology into the core of non-banking financial services while enforcing strict controls to protect investor data and prevent biased guidance.

“Our goal is to facilitate citizens’ access to capital market services via their mobile phones in complete safety,” Farid said. He added that the framework establishes a secure digital environment for financial inclusion.

Under Decision No. 332 of 2026, a digital platform is defined as an FRA-approved business model that enables the encrypted transmission of client orders for securities trading to brokerage firms. The regulation specifically targetsestablished digital channels, such as electronic payment applications, to help brokerages expand their marketing reach.

The regulation sets rigorous standards for platform accreditation, requiring full compliance with the technical infrastructure and equipment mandates of Decision No. 139 of 2023. All services provided through these platforms must be fully encrypted, and operators must maintain an electronic log for technical complaints.

While platforms may promote brokerage services following a formal agreement, they are strictly prohibited from acting on behalf of the brokerage firm or providing investment advice. The rules further bar platforms from classifying or preferring specific securities and prohibit the use of forecasting models or artificial intelligence to influence client behaviour or show bias toward any specific firm.

Brokerage firms must obtain prior FRA approval before contracting with a digital platform manager, who must be a registered Egyptian joint-stock company listed in the authority’s outsourcing register.

The FRA emphasised that brokerage firms remain solely responsible for opening client accounts and executing trade orders. They are forbidden from delegating these core duties to platform operators and must provide direct digital communication channels for their clients.

Additionally, brokerage firms are required to publish clear, updated information on the platforms regarding their services, fees, commissions, and the risks associated with electronic trading. The decision also mandates the provision of educational materials to ensure clients can safely use digital platforms and protect their login credentials.

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