CISI UAE Financial Rules & Regulations Quiz

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Questions and Answers

What is the primary function of the Securities and Commodities Authority (SCA)?

To regulate the securities and commodities market in the UAE (correct)

To provide financial assistance to brokerage firms

To trade securities on behalf of the government

To issue licenses to individual investors

Which law established the Securities and Commodities Authority (SCA)?

Decision No.(05/Chairman) of 2020

Federal Law No. 4 of 2000 (correct)

Federal Law No. 2 of 2017

Resolution No.(01/Chairman) of 2022

What is the purpose of the Professional Code of Conduct (DFM)?

To oversee the clearing and settlement of securities

To set standards for the conduct of brokerage firms (correct)

To regulate the trading of securities on the DFM

To license individual investors

What is the main purpose of the Regulations for Special Purpose Acquisition Companies (Resolution No.(01/Chairman) of 2022)?

To regulate the listing and trading of Special Purpose Acquisition Companies (SPACs) in the UAE Signup and view all the answers

What is the main purpose of the Clearing, Depository and Registry Rules?

To oversee the clearing and settlement of securities Signup and view all the answers

What is the purpose of the Client Communications, Reporting, Financial Promotions and Advertising Accepted Practice in the UAE?

To set standards for client communications and financial promotions Signup and view all the answers

What is the main purpose of the Broker and Trading Rules of the ADX?

To set standards for brokerage firms operating on the ADX Signup and view all the answers

What is the purpose of the Disclosure and Transparency requirements under Federal Law No. 4 of 2000?

To ensure that listed companies disclose price sensitive information Signup and view all the answers

Which of the following laws is related to Corporate Governance in the UAE?

Law No. 3 issued Jan 2020 Signup and view all the answers

What is the primary objective of the Securities & Commodities Authority (SCA)?

To regulate and supervise the capital market and financial services in the UAE Signup and view all the answers

Which of the following types of investment funds is characterized by investing in cash and cash equivalents?

Cash Investment Funds Signup and view all the answers

What is the primary purpose of the Central Depository?

To facilitate the trading and settlement of securities in the UAE Signup and view all the answers

Which of the following is a requirement for licensed bodies in the UAE?

To comply with the accounting system controls Signup and view all the answers

What is the primary purpose of the Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations (Federal Law No. 20 of 2018)?

To prevent money laundering and terrorist financing in the UAE Signup and view all the answers

What is the primary purpose of the Suspicious Transaction Reports (STRs)?

To detect and report suspicious transactions Signup and view all the answers

Which of the following is a type of investment fund that is characterised by investing in real estate?

Real Estate Funds Signup and view all the answers

Study Notes

Element 1: The Regulatory Infrastructure

Federal Law No. 4 of 2000 established the Securities & Commodities Authority (SCA)
SCA's functions include:
Incorporation
Organizing its membership
Managing financial affairs
SCA's roles in the securities and commodities market:
Establishing and administering the market
Overseeing clearing, settlement, transfer of ownership, and custody
Federal Law No. 4 of 2000 (Part 2, Chapter 5) regulates:
Disclosure and Transparency
Board's powers
Price sensitive information
Dealings by the chairman, directors, and staff
Inside information

Element 2: Licensed Bodies

General provisions for licensed bodies
Licensing financial activities
Requirements for capital market institutions

Element 3: Investment Funds

The local fund
Provisions specific to certain public investment funds
Cash Investment Funds
Exchange Traded Funds
Real Estate Funds
Evaluation of In-Kind Shares of Investment Funds (Decision No. (63/R.T) of 2019)

Element 4: Markets

The Central Depository (Decision No. (19/R.M) of 2018)
Issuing and offering shares in public joint-stock companies
Procedures for dealing with listed troubled joint-stock companies (Decision No. (13) of 2020)
Conciliation
Debt Securities (Decision No. (17) of 2014)
Islamic Securities
Derivatives
Crypto Assets (Decision No. (23) of 2020)

Element 5: Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations

Offences
The Role of the Financial Services Industry
Prohibitions
Politically Exposed Persons (PEPs)
Suspicious Transaction Reports (STRs)
Practical Measures
Record Keeping Requirements
Penalties
Market Abuse and Market Conduct Accepted Practice in the UAE
Conflicts of Interest Accepted Practice in the UAE

Element 6: Client Protection

Suitability Standards (Suitability and Appropriateness Standards (Decision No. (05/Chairman) of 2020))
Appropriateness Standards (Suitability and Appropriateness Standards (Decision No. (05/Chairman) of 2020))
Client Assets Accepted Practice in the UAE
Client Communications, Reporting, Financial Promotions, and Advertising Accepted Practice in the UAE
The Organization of Promotion and Introduction (Decision No. (3/R.M) of 2017)
Regulations for Special Purpose Acquisition Companies (Resolution No. (01/Chairman) of 2022)

Element 7: Trading

Abu Dhabi Securities Market (ADX)
Broker and Trading Rules of the ADX
Clearing, Depository, and Registry Rules
Clearing Operations in Commodities Markets
Dubai Gold & Commodities Exchange

Element 8: Dubai Financial Market (DFM)

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)

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Description

This quiz covers the regulatory infrastructure of the UAE, including federal laws, securities and commodities authority, corporate governance, and licensed bodies.

UAE Financial Regulations

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