“Securities” issues and amends 32 legislative decisions and refers 10 violations to the Public Prosecution

The Securities and Commodities Authority (SCA) revealed today that it has issued and amended 32 legislative decisions, in addition to reviewing and preparing 125 administrative decisions last year, as part of its ongoing efforts to advance the country’s stock market, raise its efficiency and competitiveness, and consolidate its position among global financial and economic centers..

The Authority added that among the most prominent legislative decisions issued are “regulating investment funds,” “mechanisms for adjusting the situation to promote foreign fund units within the country, registering securities for the purpose of listing, holding general assembly meetings using modern technology for remote attendance, regulating green and sustainability-linked bonds and sukuk, regulating securitization operations, and regulating virtual asset operators.”.

The Authority indicated that the most prominent legislative decisions that were amended included “technical service fees due to the Authority, controls for publishing warnings, regulating clearing operations in the commodities market, amending the system for the operation of the market, the decision to regulate the activity of the central depository and the rulebook for financial activities, regulating the work of the central clearing, in addition to amending the rulebook for financial activities by adding controls to confront money laundering crimes, combating the financing of terrorism and financing of illegal organizations.”.

The Authority explained that the legislation approved for the financial markets included controls for listing the gold product on the Dubai Financial Market, controls for the company’s purchase of its shares (treasury shares), controls for the price stability manager, controls for pooled accounts, approval of the commission for transferring securities to and from pooled accounts, and amendments to margin trading for the Abu Dhabi Securities Market..

His Excellency Mohammed Ali Al Shorafa, Chairman of the Board of Directors of the Securities and Commodities Authority, said that since its establishment about 24 years ago, the Authority has aimed to advance the securities and commodities market on the legislative, regulatory and supervisory levels by licensing and regulating financial markets, to raise their efficiency and competitiveness, grant them greater flexibility in their work and consolidate their leading position locally, regionally and globally according to scientific and professional foundations that adopt the best international standards and practices in regulating and supervising the financial industry..

His Excellency added that the forward-looking vision of the wise leadership of the UAE, which aims for the UAE financial markets to occupy a prominent position among the global financial and economic centers, is a fundamental factor in building the best and most active economy in the world, relying on the country’s flexible legislative framework and thriving financial market..

He explained that the systems and policies developed by the Securities and Commodities Authority aimed primarily at developing new platforms in the capital market, enhancing digital transformation and making markets more interconnected, transparent and attractive, noting that the Authority was keen to include in its strategic plan goals and initiatives that contribute to achieving sustainable economic development, as it issued a decision to regulate green and sustainability-linked bonds and sukuk and exempt companies wishing to list these bonds and sukuk in one of the local financial markets from registration fees..

His Excellency stated that the UAE financial markets have succeeded in keeping pace with the rapid growth witnessed by the national economy, as the volume of initial public offerings during the past year reached AED 22.3 billion as a result of the offering of shares of 8 public joint stock companies in various sectors such as the health, financial, services and gas sectors, which reflects the great support provided by the local securities sector to the national economy, and the advancement of the country’s position as one of the most attractive destinations for investment in the region..

For her part, Her Excellency Dr. Mariam Al Suwaidi, CEO of the Authority, said that the UAE continues to consolidate its position as one of the most competitive and advanced economies in the world by formulating innovative strategies aimed at supporting economic growth and diversification, which improves the results of economic development indicators, enhances the stability of the financial system and the strength and flexibility of the national economy..

Her Excellency added that the forward-looking visions of the wise leadership represent a platform for the Authority’s work and journey towards the continuous development of an integrated, supportive and stimulating legislative system for the financial markets and commodity contracts markets in the country, and are in line with the requirements of the next stage in the country’s development process to enhance the growth of the national economy..

She stated that through these visions, the Authority seeks to achieve its sustainable strategic objectives in enhancing transparency and investor confidence in national financial markets, enhancing ease of doing business, and digital transformation of services by focusing on innovation and global leadership to achieve its objectives of regulating the policies and legislation of the capital market sector, and consolidating investment awareness among stakeholders in the capital market..

The Securities and Commodities Authority explained that it reviewed and prepared 125 administrative decisions, in addition to completing 324 legal consultations and inquiries, in addition to following up on 12 lawsuits during the past year 2023..

The Authority stated that on the supervisory level, 100% of the annual plan for periodic inspection was completed, with 83 different inspections and violations referred to the competent department, in addition to completing surprise inspections of companies licensed by the Authority by 100%, with 8 companies and referring violations to the competent department, in addition to notifying and following up on 35 companies regarding shortcomings in the results of the periodic inspection of all activities licensed by the Authority and following up on their correction within 3 months from the date of notification..

The Authority pointed out that in terms of the measures aimed at protecting the rights of investors, 5 companies licensed by the Authority were suspended, 2 licensed companies were cancelled, and 10 violations of the Authority’s law and the regulations and legislation issued pursuant thereto were referred to the competent public prosecutions in the country with the aim of initiating criminal proceedings against the perpetrators of these violations, in addition to imposing 121 varying financial fines on listed companies and companies licensed by the Authority..

The Authority also issued 158 warnings and 35 alerts against listed and licensed companies, published 19 warnings on the website regarding illegal practices, and published 17 names of violators of the Authority’s law and issued regulations and legislation on the Authority’s website..