Investment Management Quiz

The SCA board is responsible for collecting information and addressing complaints regarding the securities market, conducting investigations, and imposing penalties if necessary.

The SCA board has the authority to approve the SCA's annual budget.

The SCA board appoints independent auditors from a list of licensed auditors to examine the SCA's financial activities.

The SCA board can temporarily halt trading in the securities market or specific securities if extraordinary circumstances arise that threaten the market's proper functioning.

The SCA board has the authority to modify or suspend market rules and regulations.

The SCA board ensures that participants in the securities market, including both individuals and companies, disclose essential information related to their activities.

The SCA board determines pay scales, benefits, and other financial aspects for SCA employees.

The SCA board establishes regulations governing the conduct of SCA employees.

A public institution or public company that utilizes electronic trading systems and must be connected to other markets within the state for unified transactions.

The primary regulatory authority overseeing stock markets and ensuring compliance with regulations.

A requirement for markets to document all transactions involving listed securities.

If a transaction is not documented properly according to the law and regulations, it is rendered invalid.

Entries in the market's records, whether electronic or manual, are accepted as legal proof of trading and ownership, unless proven otherwise.

A dispute resolution mechanism offered to transacting parties within the market through an arbitration process.

Regulations set by the SCA govern the arbitration process for disputes within the market.

The SCA may conduct inspections and investigations to ensure market compliance with the law, provided that the scope and authority for the investigation are clearly defined.

The responsibility of the SCA to conduct investigations and ensure that markets adhere to the regulations.

Always act with integrity, honesty, skill, and diligence to protect the reputation of yourself, your organization, and the financial services profession.

Identify and manage any potential conflicts of interest fairly and effectively, complying with laws and regulations.

Treat all counterparties and partners with respect, upholding market integrity and maintaining confidentiality.

Continuously pursue professional excellence through ongoing training and development, supporting the growth of others.

Only undertake tasks for which you are competent and qualified, seeking assistance when necessary.

Treat everyone with fairness and respect, supporting equality, diversity, and environmental responsibility.

Transactions with entities closely connected to the company's board members, such as family members or businesses owned by them.

A board member must disclose their business relationships to the board, and the board should determine if the member should participate in discussions about transactions involving their related party.

A register maintained by the company to track all related party transactions, including details like names of parties, types of transactions, and volumes involved.

The company must provide the shareholders information about related party transactions, including the nature, volume, and specifics of each transaction.

The chairman must notify the Securities and Commodities Authority (SCA) about any related party transactions, including the deal details, the related party's involvement, and confirmation that the terms are fair.

Prior to engaging in a transaction with related parties, disclosures outlining the nature of the transaction, conditions, and the related party's stake need to be provided to the board, the SCA, and the market.

Transactions that are considered normal business operations and do not offer preferential treatment to board members are generally not considered related party transactions, but disclosure is still required.

If related party transactions violate regulations or result in unfair advantages or conflicts of interest that harm shareholders, the related parties and complicit board members may face legal liability.

A Risk Management Officer is responsible for identifying, assessing, and mitigating risks within a financial firm, ensuring compliance with regulations and protecting the company's assets and reputation.

In the UAE, firms dealing in investment must hold a license from the Securities and Commodities Authority (SCA) and have a minimum capital of AED 50 million.

The SCA (Securities and Commodities Authority) requires firms dealing in investment to have a designated Risk Management Officer to ensure sound risk management practices.

The SCA (Securities and Commodities Authority) expects firms dealing in investment to have professionals in specific roles like Category Manager, Compliance Officer, and Risk Management Officer.

The SCA's requirements for dealing in investment aim to ensure financial stability and investor protection within the UAE's financial markets.

This category involves providing financial advice and rankings, but does not require a specific capital requirement.

A specialized role focusing on making sure a company complies with legal and regulatory requirements.

The SCA expects financial professionals to fulfill these roles in firms offering 'ranking and advice'.

A comprehensive system designed to manage accounts for both the firm and its clients. It's a central hub for all financial transactions.

Every user within this system has specific, assigned privileges and access based on their roles and responsibilities.

Firms dealing in securities are required to provide this system to manage their financial accounts.