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Tuesday, 20 December 2016

EFSA to meet with asset managers to discuss trading mutual funds through brokerages

Will brokerages have greater access to mutual funds? The Egyptian Financial Supervisory Authority (EFSA) plans to hold meetings with asset managers to discuss a regulatory change, first mooted in August, which would allow brokerages a larger share of trading in mutual funds. The Al Borsa article does little to explain what the change might be, but our understanding is that brokerages cannot trade on open-end mutual funds, which investors can only access today through banks. Under current EFSA regulations, brokerage firms can trade closed-ended funds. EFSA will move forward with regulatory changes if there’s desire in the industry to meet half way, suggested EFSA chief Sherif Samy.

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