UAE Financial Rules & Regulations Chapter 1 Quiz
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Questions and Answers

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

  • The Minister of Economy
  • The well-experienced board members
  • The Cabinet of Ministers (correct)
  • The CEO of SCA

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

  • Three years
  • Five years
  • Four years (correct)
  • Two years

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

  • The Minister of Economy (correct)
  • The CEO of SCA
  • The chairman of the SCA
  • The Cabinet of Ministers

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

    <p>The Minister of Economy</p> Signup and view all the answers

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

    <p>Within one week after being made aware of the change</p> Signup and view all the answers

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

    <p>A successor will be appointed for the remaining period of the original term</p> Signup and view all the answers

    What events would lead to immediate termination of membership?

    <p>Conviction of an offence of dishonour or breach of trust, bankruptcy, or failure to attend three consecutive meetings without an acceptable excuse</p> Signup and view all the answers

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

    <p>At least four times a year or as required by the chairman’s invitation</p> Signup and view all the answers

    What makes board meetings valid according to the regulations?

    <p>Attendance by the majority of the members with the chairman or his deputy also present</p> Signup and view all the answers

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

    <p>The person chairing the meeting</p> Signup and view all the answers

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

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

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

    <p>Within one month following the end of the financial year</p> Signup and view all the answers

    What is required for board meetings according to regulations?

    <p>A written invitation including the agenda sent in sufficient time prior to the date of the meeting</p> Signup and view all the answers

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

    <p>(ie, for and against have the same number of votes)</p> Signup and view all the answers

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

    <p>Adequate disclosure rules are in place and that these rules are adhered to.</p> Signup and view all the answers

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

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

    Study Notes

    Leadership of the Securities & Commodities Authority (SCA)

    • The chairman of the SCA board is determined by the Board of Directors.
    • The typical term of office for a member of the SCA board lasts for three years.
    • Five well-experienced members of the SCA board are appointed by the cabinet or relevant authority.
    • The chairing of the SCA is the responsibility of the chairman, as regulated.

    Member Conduct and Changes

    • SCA board members must declare any changes in their securities holdings within a specified timeframe to ensure transparency.
    • If a member steps down before their term ends, a new member is appointed to fill the vacancy for the remainder of the term.
    • Immediate termination of membership can occur due to events such as legal felonies, inability to perform duties, or conflicts of interest.

    Board Operations and Meetings

    • The SCA board is required to meet at least four times a year.
    • A board meeting is deemed valid if the majority of members are present, ensuring effective decision-making.
    • In the case of an undecided vote during a board meeting, the chairman has the deciding vote.

    Responsibilities of the Board of Directors

    • One key responsibility of the Board of Directors includes overseeing corporate governance and adherence to regulations.
    • Markets must submit their balance sheets, profit and loss accounts, and annual financial statements audited by an accredited auditor at the end of each financial year.
    • Regulations require a quorum for board meetings and adherence to proper procedures to ensure legitimacy.

    Additional Governance Requirements

    • The person chairing a meeting possesses the deciding vote in circumstances where the vote results in a tie.
    • Markets are required to ensure timely communication regarding any substantial developments related to listed companies.
    • The Board of Directors is responsible for applying regulations in accordance with UAE federal laws governing financial markets.

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    Description

    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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