UAE Financial Rules & Regulations Chapter 1 Quiz

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16 Questions

Who determines the chairman of the board of the Securities & Commodities Authority (SCA)?

The Cabinet of Ministers

How long is the typical term of office for a member of the SCA board?

Four years

Who appoints the five well-experienced members of the SCA board?

The Minister of Economy

Who is responsible for chairing the SCA according to the regulations?

The Minister of Economy

When must a member of the SCA board declare any changes in their securities holdings?

Within one week after being made aware of the change

What happens in the event of a member stepping down prior to the end of their term?

A successor will be appointed for the remaining period of the original term

What events would lead to immediate termination of membership?

Conviction of an offence of dishonour or breach of trust, bankruptcy, or failure to attend three consecutive meetings without an acceptable excuse

How many times should the board meet in a year according to the regulations?

At least four times a year or as required by the chairman’s invitation

What makes board meetings valid according to the regulations?

Attendance by the majority of the members with the chairman or his deputy also present

Who has the deciding vote in case of an undecided vote at a board meeting?

The person chairing the meeting

What is one of the responsibilities of the Board of Directors?

Collect notifications and complaints relating to the activities of the markets or brokers and take appropriate actions within the provisions of the Law and the regulations issued

When should markets submit balance sheets, profit and loss accounts, and annual financial statements audited by an accredited auditor?

Within one month following the end of the financial year

What is required for board meetings according to regulations?

A written invitation including the agenda sent in sufficient time prior to the date of the meeting

In what circumstances does a person chairing a meeting have the deciding vote?

(ie, for and against have the same number of votes)

What should markets ensure related to any substantial developments that occur in relation to companies listed on their market?

Adequate disclosure rules are in place and that these rules are adhered to.

Under which law should regulations be applied according to one of the responsibilities of the Board of Directors?

Article 4 of Federal Law No. 4 of 2000 and subsequent amendments

Test your knowledge of Chapter 1 of the UAE financial rules and regulations, specifically focusing on the Regulatory Infrastructure, Federal Law No. 4 of 2000, and the Securities & Commodities Authority (SCA). This quiz covers the competencies and structure of the SCA board of directors as outlined in the chapter.

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