The FRA confirmed that these unauthorized promotions include invitations to invest in financial products, securities, and funding schemes.

In a statement, the authority cautioned that dealing with such unlicensed entities poses severe financial risks to individuals and exposes those offering such services to legal accountability.

Unlicensed financial activities
 

The FRA revealed that it had recently identified several online platforms and advertisements seeking public funds for investment purposes and offering financial services without licenses. 

In response, the authority affirmed that prior approval from the FRA is required for participation in securities offerings, such as the subscription of shares or bonds.

It also warned the public against engaging with entities or platforms claiming to provide investment opportunities or financing services without proper licenses from relevant authorities.

FRA website, reporting tools
 

To support public awareness and safety, the FRA website has dedicated a section listing all companies licensed to offer non-banking financial services in Egypt.

The authority has urged citizens to visit its website, which includes investment and insurance companies, before engaging with any financial service provider.

Moreover, the FRA has set up a reporting email ([email protected]) for the public to report suspicious or unlicensed activities. 

It has also encouraged companies seeking to promote equity offerings or collect funds from the public legally to contact the authority beforehand via [email protected] to understand all legal and regulatory requirements.

Gold investment regulation
 

Additionally, the FRA clarified its role in regulating precious metals investments in light of recent inquiries and misleading advertisements claiming that the authority has given specific gold trading firms licenses.

The authority indicated that it only regulates investments through precious metals investment fund certificates, not by directly buying or selling physical gold.

It also emphasized that companies registered under its supervision are only authorized to work with licensed investment managers in offering investment fund certificates for metals such as gold. However, it is not a license to trade in all precious metals.

Only three funds have been licensed to trade investment certificates representing shares in metals so far, and their information is publicly available on the FRA’s website.

The authority warned that recent invitations to directly purchase gold from individuals and similar claims by gold dealers implying FRA endorsement are false and misleading.

Stay vigilant!
 

The FRA urged all citizens and investors to remain cautious and avoid falling prey to fictitious investment schemes, whether in real estate, digital currencies, or precious metals. 

It added that any entity soliciting funds or promoting financial products must be licensed and monitored by the relevant authorities.

The authority also said it will soon publish a “negative list” of unlicensed entities that have been proven to be violating laws after reviewing complaints submitted by the public and assessing the business practices of accused companies.

This move is part of the FRA’s broader commitment to investor protection, market transparency, and regulation of Egypt’s non-banking financial markets.