Securities and Commodities Authority Regulations
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Questions and Answers

What is the first action that can be taken when a financial requirement is violated?

  • Penalty
  • Warning (correct)
  • Notice to rectify
  • Suspension

    • How long does the market have to rectify the cause of the violation after receiving a notice?

  • 15 days
  • No specific time frame
  • 60 days
  • 30 days (correct)

    • What consideration is used when determining a penalty for delayed payment?

  • A part-month is considered as a full month (correct)
  • Only whole months are considered
  • Penalties are waived for part-month delays
  • No consideration is made for the timing of payments

    • What action may the SCA take regarding a market that has not paid fees?

    <p>Temporarily suspending the market from operation</p> Signup and view all the answers

    What must listed companies do with price-sensitive information?

    <p>Make it immediately available to the market</p> Signup and view all the answers

    Who has the authority to order investigations related to securities activities?

    <p>The board of directors</p> Signup and view all the answers

    Which of the following actions is strictly prohibited when dealing with securities?

    <p>Falsifying information to manipulate market value</p> Signup and view all the answers

    What happens to transactions executed in breach of disclosure provisions?

    <p>They are null and void</p> Signup and view all the answers

    What is required before an employee of a listed company can buy or sell shares?

    <p>Approval from the board of directors</p> Signup and view all the answers

    What happens to transactions that are not approved or disclosed by employees?

    <p>They are null and void</p> Signup and view all the answers

    What does the Securities & Commodities Authority (SCA) primarily aim to regulate?

    <p>Securities and commodities markets.</p> Signup and view all the answers

    Which of the following is NOT one of the strategic goals of the Securities & Commodities Authority?

    <p>To increase international trade agreements</p> Signup and view all the answers

    What fundamental purpose does the Securities & Commodities Authority aim to serve?

    <p>Provide a suitable climate for investment in securities and commodities</p> Signup and view all the answers

    Which of the following is NOT a focus of the SCA according to the Federal Law No. 4 of 2000?

    <p>Environmental regulations for firms.</p> Signup and view all the answers

    What distinguishes the SCA in terms of its legal status?

    <p>It is a separate legal personality with financial and administrative independence.</p> Signup and view all the answers

    What is NOT a consequence of spreading rumors regarding share transactions?

    <p>Transaction becomes valid if disclosed later</p> Signup and view all the answers

    Who does the SCA report to?

    <p>The Cabinet of Ministers.</p> Signup and view all the answers

    The Securities & Commodities Authority operates with which of the following characteristics?

    <p>Public authority with legal personality and financial independence</p> Signup and view all the answers

    What legislative act established the SCA?

    <p>Federal Law No. 4 of 2000.</p> Signup and view all the answers

    Which of the following best describes a duty of the Securities & Commodities Authority?

    <p>Safeguard the rights of financial market investors</p> Signup and view all the answers

    What type of actions regarding share transactions are explicitly banned by policy?

    <p>Spreading rumors about transactions</p> Signup and view all the answers

    Which of the following roles does the SCA NOT fulfill?

    <p>Licensing of educational institutions.</p> Signup and view all the answers

    What is one of the key objectives of the SCA?

    <p>Ensuring fair and transparent trading in securities.</p> Signup and view all the answers

    In which city is the SCA incorporated?

    <p>Abu Dhabi.</p> Signup and view all the answers

    What is one of the primary responsibilities of the board regarding market activities?

    <p>To report on the market’s activities to the Cabinet of Ministers</p> Signup and view all the answers

    What are the two main administrative roles within the SCA mentioned in the content?

    <p>Undersecretary and Assistant Undersecretary</p> Signup and view all the answers

    What is required in relation to financial operations of the SCA?

    <p>The SCA must keep regular books of account.</p> Signup and view all the answers

    Which of the following sources of income does NOT belong to the SCA?

    <p>Advertising revenue from market events</p> Signup and view all the answers

    How frequently is the annual budget prepared by the chief executive?

    <p>Once a year</p> Signup and view all the answers

    What is the duration of the fiscal year for the SCA?

    <p>From January to December</p> Signup and view all the answers

    What role do auditors play within the SCA?

    <p>They audit the financial statements of the SCA.</p> Signup and view all the answers

    Which of the following is NOT a duty of the SCA regarding market memberships?

    <p>Setting membership fees for local businesses</p> Signup and view all the answers

    What is the minimum frequency at which the board must convene?

    <p>Every two months</p> Signup and view all the answers

    Who presides over the meetings of the board?

    <p>The chairman or their deputy</p> Signup and view all the answers

    What is required for the board to pass resolutions?

    <p>Majority of the votes of those present</p> Signup and view all the answers

    In the event of an equal vote, who has the deciding vote?

    <p>The chairman or their deputy</p> Signup and view all the answers

    Who may take the place of the chairman when they are absent?

    <p>The deputy chairman</p> Signup and view all the answers

    Under which circumstance can the chairman make decisions without a board meeting?

    <p>In exceptional cases requiring quick decisions</p> Signup and view all the answers

    What is not allowed regarding voting in board meetings?

    <p>Voting by proxy</p> Signup and view all the answers

    What role do experts outside the board play when invited to meetings?

    <p>They provide experience and knowledge but do not vote</p> Signup and view all the answers

    Which of the following is NOT a financial activity included in 'custody, clearing and recording'?

    <p>Underwriting securities</p> Signup and view all the answers

    What is the minimum paid-up capital requirement for credit rating agencies?

    <p>AED 5 million</p> Signup and view all the answers

    Which entity must comply with the provisions of the Companies Law when operating in the financial free zone?

    <p>Credit rating agencies</p> Signup and view all the answers

    What is one main function expected from the category of credit rating agencies?

    <p>Category Manager or Official</p> Signup and view all the answers

    Which of the following statements is a requirement for credit rating agencies operating in the financial free zones?

    <p>Must submit evidence of jurisdiction agreements with regulatory authorities</p> Signup and view all the answers

    What is a requirement for firms licensed to operate as credit rating agencies?

    <p>Legal person or branch of a foreign company</p> Signup and view all the answers

    Which of the following is specifically NOT a role expected from credit rating agencies?

    <p>Fund Manager</p> Signup and view all the answers

    Which jurisdiction is excluded for disputes based on licenses issued to credit rating agencies?

    <p>Courts of the financial free zone</p> Signup and view all the answers

    Study Notes

    UAE Financial Rules and Regulations

    • This workbook relates to syllabus version 4.0 and will cover exams from 10 September 2023 to 20 May 2025
    • It is an educational workbook only and the Chartered Institute for Securities & Investment accepts no responsibility for persons undertaking trading or investments in whatever form.
    • While every effort has been made to ensure accuracy, no responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication can be accepted by the publisher or authors.
    • All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior permission of the copyright owner.
    • Any unauthorised act in relation to all or any part of the material in this publication may result in both a civil claim for damages and criminal prosecution.
    • The workbook contains a learning map, which includes the full syllabus, and the syllabus can be viewed at cisi.org, along with contact information for Customer Support.
    • The questions contained in the workbook are designed to aid revision and consolidation of learning, one chapter at a time.
    • Contains 100 examination-related questions

    Chapter One: The Regulatory Infrastructure

    • Topics include:
      • Federal Law No. 4 of 2000
      • Securities & Commodities Authority (SCA)
      • SCA Resolutions
      • Corporate Governance
      • Codes of Conduct
      • License Categories and Requirements
      • Accounting System Controls
    • This syllabus covers approximately 11 of the 100 exam questions

    Chapter Two: Licensed Bodies

    • Topics include:
      • General Provisions
      • Licensing Financial Activities
      • Further Licence Applicant Requirements
    • This syllabus covers approximately 14 of the 100 exam questions

    Chapter Three: Investment Funds

    • Topics include:
      • Local Funds
      • Provisions Specific to Certain Public Investment Funds
      • Cash Investment Funds
      • Exchange-Traded Funds (ETFs)
      • Real Estate Funds
      • Evaluation of In-Kind Shares of Investment Funds
    • This syllabus covers approximately 15 of the 100 exam questions

    Chapter Four: Markets

    • Topics include:
      • The Central Depository
      • Issuing and Offering Shares in Public Stock Companies
      • Troubled Public Joint-Stock Companies
      • Conciliation
      • Debt Securities
      • Islamic Securities
      • Derivatives
      • Crypto Assets
    • This syllabus covers approximately 14 of the 100 exam questions

    Chapter Five: Anti-Money Laundering and Combating the Financing of Terrorism

    • Topics include:
      • Offences
      • The Role of the Financial Services Sector
      • Prohibitions
      • Politically Exposed Persons (PEPs)
      • Suspicious Transaction Reports (STRs)
      • Practical Measures
      • Record Keeping Requirements
      • Penalties
      • Market Abuse Regulations in the UAE
      • Conflicts of Interest Accepted Practice in the UAE
    • This syllabus covers approximately 14 of the 100 exam questions

    Chapter Six: Client Protection

    • Topics include:
      • Suitability Standards
      • Appropriateness Standards
      • Client Assets Accepted Practice
      • Client Communications, Reporting, Financial Promotions and Advertising
      • Promoters and Introducers
      • Regulations for Special Purpose Acquisition Companies
    • This syllabus covers approximately 10 of the 100 exam questions

    Chapter Seven: Trading

    • Topics include:
      • Abu Dhabi Securities Market (ADX)
      • Broker and Trading Rules of the ADX
      • Clearing, Depository and Registry Rules
      • Clearing in Commodities Markets
      • Dubai Gold & Commodities Exchange
    • This syllabus covers approximately 11 of the 100 exam questions

    Chapter Eight: Dubai Financial Market (DFM)

    • Topics include:
      • Brokerage Firms
      • Rules of Securities Trading in the DFM
      • The Professional Code of Conduct (DFM)
      • Online Trading Regulations (DFM)
      • Order Types (DFM)
      • Order Handling (DFM)
    • This syllabus covers approximately 11 of the 100 exam questions

    Glossary

    • Contains definitions for various financial terms and entities relevant to UAE financial regulations

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    Related Documents

    UAE Financial Rules and Regulations Edition 4, June 2023 PDF

    Description

    Test your knowledge on the regulations and procedures enforced by the Securities and Commodities Authority (SCA). This quiz covers various aspects including penalties, disclosures, and the strategic goals of the SCA. Assess your understanding of compliance in securities activities and related rules.

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