16 Questions
What is the primary federal law governing the regulatory infrastructure in the UAE?
Federal Law No. 4 of 2000
Which of the following is NOT a requirement for licensed bodies?
Corporate governance compliance
What type of investment fund is specifically designed for cash investments?
Cash Investment Funds
Which decision governs the procedures for dealing with listed troubled joint-stock companies?
Decision No.(13) of 2020
What is the primary purpose of the Central Depository?
To provide a central registry for securities
Which of the following is a key aspect of Anti-Money Laundering and Combating the Financing of Terrorism?
Record keeping requirements
What is the primary purpose of the Securities & Commodities Authority (SCA)?
To regulate the securities and commodities market
Which of the following is a type of investment fund that tracks a specific market index?
Exchange Traded Funds
Which Federal Law is related to the Securities and Commodities Authority (SCA)?
Federal Law No. 4 of 2000
What is the main function of the Securities and Commodities Authority (SCA)?
To regulate the securities and commodities market
Which of the following is NOT a part of the Securities and Commodities Authority (SCA)?
Regulation of the banking sector
What is the main purpose of the clearing and settlement process?
To ensure the smooth transfer of ownership
Which of the following is a requirement for disclosure and transparency?
Price sensitive information
Which element is related to the Dubai Financial Market (DFM)?
Element 8: Dubai Financial Market (DFM)
Which of the following is a rule related to the Abu Dhabi Securities Market (ADX)?
Broker and Trading Rules
Which Decision is related to the Organization of Promotion and Introduction?
Decision No.(3/R.M) of 2017
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)
This quiz covers the regulatory infrastructure for securities in the United Arab Emirates, including federal laws, authorities, and requirements for licensed bodies. Topics include corporate governance, codes of conduct, and accounting system controls.
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