UAE Securities Regulations
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Questions and Answers

What is the primary federal law governing the regulatory infrastructure in the UAE?

  • Federal Law No. 3 of 2020
  • Federal Law No. 20 of 2018
  • Federal Law No. 4 of 2000 (correct)
  • Federal Law No. 13 of 2021
  • Which of the following is NOT a requirement for licensed bodies?

  • Licensing financial activities
  • Capital market institution requirements
  • Accounting system controls
  • Corporate governance compliance (correct)
  • What type of investment fund is specifically designed for cash investments?

  • Real Estate Funds
  • Exchange Traded Funds
  • Islamic Securities
  • Cash Investment Funds (correct)
  • Which decision governs the procedures for dealing with listed troubled joint-stock companies?

    <p>Decision No.(13) of 2020</p> Signup and view all the answers

    What is the primary purpose of the Central Depository?

    <p>To provide a central registry for securities</p> Signup and view all the answers

    Which of the following is a key aspect of Anti-Money Laundering and Combating the Financing of Terrorism?

    <p>Record keeping requirements</p> Signup and view all the answers

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

    <p>To regulate the securities and commodities market</p> Signup and view all the answers

    Which of the following is a type of investment fund that tracks a specific market index?

    <p>Exchange Traded Funds</p> Signup and view all the answers

    Which Federal Law is related to the Securities and Commodities Authority (SCA)?

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

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

    <p>To regulate the securities and commodities market</p> Signup and view all the answers

    Which of the following is NOT a part of the Securities and Commodities Authority (SCA)?

    <p>Regulation of the banking sector</p> Signup and view all the answers

    What is the main purpose of the clearing and settlement process?

    <p>To ensure the smooth transfer of ownership</p> Signup and view all the answers

    Which of the following is a requirement for disclosure and transparency?

    <p>Price sensitive information</p> Signup and view all the answers

    Which element is related to the Dubai Financial Market (DFM)?

    <p>Element 8: Dubai Financial Market (DFM)</p> Signup and view all the answers

    Which of the following is a rule related to the Abu Dhabi Securities Market (ADX)?

    <p>Broker and Trading Rules</p> Signup and view all the answers

    Which Decision is related to the Organization of Promotion and Introduction?

    <p>Decision No.(3/R.M) of 2017</p> 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 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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