SCA Regulations and Compliance Quiz

The body responsible for regulating and overseeing licensed entities in a particular industry, such as financial services.

Financial products like mutual funds, hedge funds, and exchange-traded funds (ETFs) that pool money from multiple investors to invest in various assets.

All kinds of marketplaces and exchanges where financial instruments are traded (e.g., stock markets, bond markets, currency markets).

Laws and measures designed to prevent money laundering (converting illegally obtained funds into legitimate ones) and financing terrorism.

Measures taken to protect clients in financial transactions by ensuring fair dealing, disclosing risks, and minimizing financial loss.

All activities related to buying and selling financial instruments, including orders, execution, settlement, and reporting.

The official stock exchange based in Dubai, UAE. A key marketplace for regional businesses seeking capital.

The SCA can request any information it needs to make a decision about a licence application.

The SCA will inform the parties involved about its decision on a licence application within a week of making the decision.

If the SCA rejects a licence application, it must explain its reasons for doing so.

Applicants can reapply for a licence if the reasons for rejection no longer exist.

The SCA can investigate and inspect markets and brokers to ensure they are following the law.

The SCA can order a party under investigation to stop selling securities and withdrawing funds.

Markets need to provide financial statements certified by an auditor to the SCA.

The SCA can review appeals against decisions made by a market's board on penalties.

The Securities and Commodities Authority (SCA) board members serve a four-year term, renewable once. If a member steps down before their term is up, a new member will be appointed for the remaining time.

The SCA board must hold a meeting if a majority of members are present, including the chairman or their deputy. Decisions are made by majority vote.

SCA board members must disclose any securities owned by themselves, their spouses and minor children, as well as any holdings with a broker, upon joining the board and any changes to these holdings within one week of the change.

An SCA board member can be removed from the board if they are convicted of an offence of dishonour or breach of trust, declare bankruptcy, or fail to attend three consecutive meetings without an acceptable excuse.

The SCA board ensures that all regulated entities in the UAE financial markets adhere to the regulations within the Federal Law No. 4 of 2000 and subsequent amendments.

The SCA board is responsible for collecting complaints and notifications related to the activities of brokers and markets and taking action when necessary.

SCA board ensures brokers and markets submit audited annual financial statements within one month of the end of the financial year.

The SCA board ensures that markets and brokers are regulated and operating within the bounds of the law.

A regulatory body responsible for overseeing and supervising the financial markets to ensure their proper functioning, efficiency, and protection of investors.

A collective of members responsible for setting the strategic direction of the financial market, including developing rules and policies.

Specialized departments established by the market to handle various operational tasks, such as trading, monitoring market activity, investigating potential issues, and conducting research.

Individuals or entities who are required to be part of the financial market, such as brokers, companies with listed securities, and other entities with listed securities.

The main body of the financial market composed of members who have paid their fees, and each member has one vote during general assembly meetings.

A representative from the SCA who attends General Assembly meetings to observe and ensure compliance with regulations.

The General Assembly's role is to analyze the overall condition of the market, suggest improvements, and identify challenges to its smooth operation.

The General Assembly submits its observations and suggestions to the SCA through the market's board of directors, ensuring open communication and transparency.

For board members, excluding the CEO, it's a three-year term.

They should report to the Cabinet of Ministers on their activity in the markets every six months.

The SCA's funding comes from fees collected from the markets it regulates.

They aim to boost transparency and provide investors with all the necessary information to make informed decisions.

The SCA has broad powers, including investigating and inspecting markets, imposing penalties, and issuing licenses.

An application from a market must be accompanied by a comprehensive business plan, financial statements, and details of its management team.

The board must make a decision on a market's application within 30 days.

Managing the investments of funds, such as mutual funds, hedge funds, or specific portfolios of securities.

The process of overseeing and executing the trades of securities, like stocks and bonds, within a portfolio.

A type of company regulated by the Securities and Commodities Authority (SCA) in the UAE.

These companies must be either joint stock companies within the UAE, banks, or branches of foreign banks licensed by the UAE Central Bank.

The SCA requires a minimum capital of AED 50 million for firms operating in the custody, clearing, and recording category.

This professional role manages the overall operations of a custodian, clearing, and recording firm.

The Compliance Officer ensures the firm follows all relevant laws and regulations related to custody, clearing, and recording activities.

The Risk Management Officer assesses and manages potential risks within the custodian, clearing, and recording operations.