The Financial Regulatory Authority (FRA) has allowed brokerage and asset management companies to open customer accounts online.
According to the statement addressed to brokerage firms and asset management companies, the decision is an activation of the digital transformation steps that the Egyptian state is currently following.
FRA’s new decision will attract new customer segments to the stock market which will impact the performance of brokerage firms.
However, The FRA’s decision came after demands from brokerage firms to authorize electronic signature, expecting it to increase the number of active investors in the market.
Furthermore, the FRA is working to facilitate the procedures for contracting with clients to increase the volume of trading. Contracting with clients often takes time. However, with the new decision, a lot of procedures will no longer be time consuming.