Algiers – The Committee for the Organization and Supervision of Stock Market Operations (COSOB) has proposed allowing insurance companies to act as brokers in the Algerian stock market as part of a preliminary financial market reform project, according to the committee’s chairman, Youssef Bouznada, during a press conference on Sunday in Algiers.
Speaking on the sidelines of a seminar titled “Stimulation and Strategy for an Effective Algerian Financial Market,” organized jointly by COSOB and the Algerian Union of Insurance and Reinsurance Companies, Mr. Bouznada explained that the committee has submitted a proposal to the Ministry of Finance. The proposal suggests introducing new provisions within a preliminary draft law on the financial market, which aims to replace Legislative Decree No. 93/10 of May 23, 1993. This change would allow insurance companies, alongside banks and dedicated financial institutions, to obtain licenses to act as stock market brokers.
COSOB emphasized the crucial role that insurance companies could play in developing and stimulating the stock market. Thanks to their extensive networks, expertise, and highly qualified human resources, insurance firms are well-positioned to contribute to the growth and accessibility of the stock exchange.
Expanding Brokerage Activities to Support Savings and National Economic Growth
During the press conference, which was also attended by Bilal Sahnoun, Director-General of the Tunis Stock Exchange, Mr. Bouznada expressed optimism about enabling insurance companies to serve as brokers. He stressed that these companies have the necessary capabilities to mobilize savings and help finance the national economy.
He further explained that licensing insurance companies as brokers would allow them to engage in various activities, including consulting on securities placement, managing individual portfolios for collective investment institutions, and trading in financial products. Insurance firms would also be able to advise companies on capital structure, mergers, and acquisitions.
COSOB’s Ongoing Financial Market Reforms
Mr. Bouznada noted that the Ministry of Finance had already established a committee to draft a preliminary financial market reform project, and COSOB has been entrusted with preparing the text. The committee has submitted several proposals, including green finance initiatives and suggestions to transform COSOB into a national financial market regulatory authority.
In addition, Mr. Bouznada announced the launch of a new financial training program in December 2024, in partnership with the Union of Arab Securities Authorities and the Algerian Institute of Higher Financial Studies. This program will focus on specialized topics such as business valuation, data analysis, and financial reporting for institutions, targeting Algerian financial sector professionals, particularly stock market brokers.
Upcoming Events and International Cooperation
COSOB will also host its second annual conference on November 23, 2024, featuring experts from financial regulatory authorities in Egypt, Oman, Tunisia, and representatives from the Arab Monetary Fund.
On the sidelines of the seminar, Bilal Sahnoun, Director-General of the Tunis Stock Exchange, expressed Tunisia’s willingness to share its 30 years of experience with Algerian financial market stakeholders. He emphasized the significant potential for collaboration between the two countries, highlighting the opportunities to translate shared expertise into tangible achievements.
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Author: nor-eleslam
COSOB, financial market reform, insurance companies as brokers, Algeria stock exchange, economic growth, international financial cooperation
