FRA allows securities brokerages to market services via digital platforms

Updated 2/8/2026 9:53:00 AM

Arab Finance: The Financial Regulatory Authority (FRA) has issued a new decision allowing securities brokerage firms to market their services through digital platforms for the first time, as per a statement.

The move is part of broader efforts to integrate financial technology into non-banking financial services while safeguarding investor protection.

The decision comes in response to the rapid growth of financial technology solutions and aims to facilitate citizens’ access to capital market services in a secure manner.

FRA's Chairman Mohamed Farid explained that the decision embeds financial technology within the core of non-banking financial services, while introducing strict controls to ensure the privacy of investor data and protect it from biased manipulation.

He said this approach supports secure digital financial inclusion and strengthens confidence in electronic market services.

Furthermore, the framework allows brokerage firms to benefit from the widespread use of digital platforms, including electronic payment applications, to expand the marketing of their services.

The decision sets out detailed requirements for platform accreditation, including compliance with the technological and equipment standards outlined in decision No. 139 of 2023.

It also mandates full encryption of all services provided through the platform and the establishment of an electronic log to record and track technical complaints related to platform use.

According to the FRA, digital platforms may only promote the services of brokerage firms after a formal agreement is in place and are prohibited from performing any activities on behalf of those firms.

Platforms are also barred from providing investment recommendations, ranking or favoring securities, influencing client behavior through predictive models or artificial intelligence tools, or showing bias toward any specific brokerage firm.

The decision requires brokerage firms to obtain prior approval from the authority before contracting with a digital platform manager to receive and encrypt client orders.

The platform manager must be an Egyptian joint-stock company registered in the outsourcing registry and approved by the FRA, and is responsible solely for establishing and managing the digital platform.

Brokerage firms remain fully responsible for opening client accounts and executing orders, without delegating any of their core functions to the platform.

They are also required to provide independent digital communication channels with clients.

In addition, brokerage firms must ensure that digital platforms display clear and up-to-date information, including details on the services offered, applicable fees and commissions, and the risks associated with electronic transactions.

The information must also include educational content to raise client awareness about the safe use of digital platforms and the importance of protecting login credentials, reinforcing investor protection, and reducing technological risks.