UAE Financial Rules and Regulations PDF - CISI

UAE Financial Rules and Regulations Effective from 10 September 2023 © Chartered Institute for Securities & Investment  UAE Financial Rules and Regulations Objective of the examination The objective of the examination is to ensure candidates have a basic...

UAE Financial Rules and Regulations Effective from 10 September 2023 © Chartered Institute for Securities & Investment  UAE Financial Rules and Regulations Objective of the examination The objective of the examination is to ensure candidates have a basic knowledge of the regulations and legislation underpinning the financial markets and the conduct of investment business in the United Arab Emirates. The examination will test candidates’ knowledge and understanding of the following elements: The Regulatory Infrastructure Licensed bodies Investment Funds Markets Anti-Money Laundering, Combating the Financing of Terrorism and Illegal Organisations Client Protection Trading Dubai Financial Market (DFM) Syllabus structure The unit is divided into elements. These are broken down into a series of learning objectives. Each learning objective begins with one of the following prefixes: know or understand. These words indicate the different levels of skill to be tested. know requires the candidate to recall information such as facts, rules and principles understand requires the candidate to demonstrate comprehension of an issue, fact, rule or principle Version 4.2 © Chartered Institute for Securities & Investment 1  UAE Financial Rules and Regulations Candidate Update Candidates are reminded to check the ‘Candidate Update’ area of the Institute’s website (cisi.org/candidateupdate) on a regular basis for updates that could affect their examination as a result of industry change. Examination Specification Each examination paper is constructed from a specification that determines the weightings that will be given to each element. The specification is given below. It is important to note that the numbers quoted may vary slightly from examination to examination as there is some flexibility to ensure that each examination has a consistent level of difficulty. However, the number of questions tested in each element should not change by more than two. Examination specification 100 multiple choice questions Element Questions 1 The Regulatory Infrastructure 11 2 Licensed bodies 14 3 Investment Funds 15 4 Markets 14 5 Anti-Money Laundering and Combating the Financing of Terrorism 14 and Illegal Organisations (Federal Law No. 20 of 2018) 6 Client Protection 10 7 Trading 11 8 Dubai Financial Market (DFM) 11 Total 100 2 © Chartered Institute for Securities & Investment Version 4.2  UAE Financial Rules and Regulations Assessment Structure Assessment is a 2 hour examination of 100 multiple choice questions. Candidates sitting the exam by Computer Based Testing may have, in addition, up to 10% additional questions as trial questions that will not be separately identified and do not contribute to the result. Candidates will be given proportionately more time to complete the test. Definitions In this syllabus, unless the context otherwise requires, words and expressions shall have the meaning ascribed to it in the relevant law, rule or regulation. Version 4.2 © Chartered Institute for Securities & Investment 3  UAE Financial Rules and Regulations Summary Syllabus Element 1 The Regulatory Infrastructure 1.1 Federal Law No. 4 of 2000 1.2 Securities & Commodities Authority (SCA) 1.3 SCA Resolutions 1.4 Corporate Governance – (Law No. 3 issued Jan 2020) 1.5 Codes of Conduct 1.6 License categories and requirements (decision no.13/Chairman issued on 2021) 1.7 Accounting system controls (decision no.13/Chairman issued on 2021) Element 2 Licensed bodies 2.1 General provisions 2.2 Licensing financial activities 2.3 Requirements of capital market institutions Element 3 Investment Funds 3.1 The local fund 3.2 Provisions Specific to Certain Public Investment Funds 3.3 Cash Investment Funds 3.4 Exchange Traded Funds 3.5 Real Estate Funds 3.6 Evaluation of In-Kind Shares of Investment Funds (Decision No. (63/R.T) of 2019) Element 4 Markets 4.1 The Central Depository (Decision No. (19/R.M) of 2018) 4.2 Issuing and Offering Shares in Public Joint-Stock Companies 4.3 Procedures for Dealing with Listed Troubled Joint-Stock Companies (Decision No. (13) of 2020) 4.4 Conciliation 4.5 Debt Securities (Decision No. (17) of 2014) 4.6 Islamic Securities 4.7 Derivatives 4.8 Crypto Assets (Decision No. (23) of 2020) 4 © Chartered Institute for Securities & Investment Version 4.2  UAE Financial Rules and Regulations Element 5 Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations (Federal Law No. 20 of 2018) 5.1 Offences 5.2 The Role of the Financial Services Industry 5.3 Prohibitions 5.4 Politically Exposed Persons (PEPs) 5.5 Suspicious Transaction Reports (STRs) 5.6 Practical Measures 5.7 Record Keeping Requirements 5.8 Penalties 5.9 Market Abuse and Market Conduct Accepted Practice in the UAE 5.10 Conflicts of Interest Accepted Practice in the UAE Element 6 Client Protection 6.1 Suitability Standards (Suitability and Appropriateness Standards (Decision No. (05/Chairman) of 2020)) 6.2 Appropriateness Standards (Suitability and Appropriateness Standards (Decision No. (05/Chairman) of 2020)) 6.3 Client Assets Accepted Practice in the UAE 6.4 Client Communications, Reporting, Financial Promotions and Advertising Accepted Practice in the UAE 6.5 The Organization of Promotion and Introduction (Decision No. (3/R.M) of 2017) 6.6 Regulations for Special Purpose Acquisition Companies (Resolution No. (01/Chairman) of 2022) Element 7 Trading 7.1 Abu Dhabi Securities Market ADX 7.2 Broker and Trading Rules of the ADX 7.3 Clearing, Depository and Registry Rules 7.4 Clearing Operations in Commodities Markets 7.5 Dubai Gold & Commodities Exchange Element 8 Dubai Financial Market (DFM) 8.1 Brokerage Firms 8.2 Rules of Securities Trading in the DFM 8.3 The Professional Code of Conduct (DFM) 8.4 Online Trading Regulations (DFM) Version 4.2 © Chartered Institute for Securities & Investment 5  UAE Financial Rules and Regulations 8.5 Order Types (DFM) 8.6 Order Handling (DFM) 6 © Chartered Institute for Securities & Investment Version 4.2  UAE Financial Rules and Regulations Element 1 The Regulatory Infrastructure 1.1 Federal Law No. 4 of 2000 On completion, the candidate should: 1.1.1 understand the functions of the Securities & Commodities Authority (SCA) (Federal Law No. 4 of 2000 Part 1, Chapters 1–3, Articles 1– 19) incorporation of SCA organs of the SCA and its membership SCA’s financial affairs 1.1.2 understand the establishment and administration of the securities and commodities market 1.1.3 understand the application of Federal Law No. 4 of 2000 (Part 2, Chapters 3–4, Articles 30–32) to: clearing settlement transfer of ownership custody 1.1.4 understand the application of Federal Law No. 4 of 2000 (Part 2, Chapter 5, Articles 33–39) to Disclosure and Transparency: board’s powers price sensitive information dealings by the chairman, directors and staff inside information Version 4.2 © Chartered Institute for Securities & Investment 7  UAE Financial Rules and Regulations 1.2 Securities & Commodities Authority (SCA) On completion, the candidate should: 1.2.1 understand the regulations as to the functioning of the Securities & Commodities Authority (Cabinet of Ministers Resolution 2000–13 dated 3 July 2000) public authority objectives and powers organs of SCA and their competencies administration finances 1.2.2 understand the regulations as to market licensing and supervision (Cabinet of Ministers resolution 2000–11 dated 3 July 2000) conditions applications board’s powers 1.3 SCA Resolutions On completion, the candidate should: 1.3.1 know the regulations that apply to a securities and commodities market licensed in the UAE (Regulations as to the functioning of the market SCA regulation 2001–3 dated 29 April 2001) general provisions establishment and management membership trading finances 8 © Chartered Institute for Securities & Investment Version 4.2  UAE Financial Rules and Regulations 1.4 Corporate Governance – (Law No. 3 issued Jan 2020) On completion, the candidate should: 1.4.1 know the terms of the joint-stock companies governance guide the main pillars (introduction), guide principles and objectives (Article 2) responsibilities (Article 4) 1.4.2 know the regulations regarding: gifts (Article 30) conflicts of interest (Articles 32 & 33) related parties (Articles 34–39) 1.5 Codes of Conduct On completion, the candidate should: 1.5.1 know the CISI code of conduct 1.6 License categories and requirements (decision no.13/Chairman issued on 2021) On completion, the candidate should: 1.6.1 know licensing requirements for dealing in securities: capital requirements (Annex 1) main functions of the license category (Annex 1) financial activities with the category (Annex 1) approved jobs for each activity (Annex 1) 1.6.2 know licensing requirements for dealing in investment: capital requirements (Annex 1) main functions of the license category (Annex 1) financial activities with the category (Annex 1) approved jobs for each activity (Annex 1) Version 4.2 © Chartered Institute for Securities & Investment 9  UAE Financial Rules and Regulations 1.6.3 know licensing requirements for custody, clearing and recording: capital requirements (Annex 1) main functions of the license category (Annex 1) financial activities with the category (Annex 1) 1.6.4 know licensing requirements for credit rating agencies: capital requirements (Annex 1) main functions of the license category (Annex 1) 1.6.5 know licensing requirements for ranking and advice: main functions of the license category (Annex 1) financial activities with the category (Annex 1) approved jobs for each activity (Annex 1) 1.7 Accounting system controls (decision no.13/Chairman issued on 2021) On completion, the candidate should: 1.7.1 know the obligations of licensed bodies regarding accounting system controls (Annex 2) Element 2 Licensed bodies 2.1 General provisions On completion, the candidate should: 2.1.1 know the obligations of licensed bodies in relation to: disclosure of legal status (Article 8) state of emergency (Article 9) place of business (Article 10) close ties (Article 11) 2.1.2 know the obligations of licensed bodies in relation to: 10 © Chartered Institute for Securities & Investment Version 4.2  UAE Financial Rules and Regulations control and investigation (Article 12) contact with the authority (Article 13) providing information to the Authority and the capital market institutions (Article 14) 2.1.3 know the sanctions available to the Authority in the event of a violation of its provisions (Article 17) 2.2 Licensing financial activities On completion, the candidate should: 2.2.1 know: the types of licensed financial activities (Chapter 2, Article 1) license categories (Chapter 2, Article 2) 2.2.2 know the requirements for meeting initial approval conditions: financial eligibility (Chapter 2, section 3, Article 2) experience and efficiency (Chapter 2, section 3, Article 2) honesty and integrity (Chapter 2, section 3, Article 2) compliance (Chapter 2, section 3, Article 2) professional record (dismissal, sanction or license cancellation) (Chapter 2, section 3, Article 2) feasibility study & work plan (Chapter 2, section 3, Article 2) resources (Chapter 2, section 3, Article 2) appropriateness of the company, its board and senior management (Chapter 2, section 3, Article 2) 2.3 Requirements of capital market institutions On completion, the candidate should: 2.3.1 know requirements for license applicants in relation to: governance (Chapter 4, Article 2, point 6) Version 4.2 © Chartered Institute for Securities & Investment 11  UAE Financial Rules and Regulations administration (Chapter 4, Article 2, point 7) employees (Chapter 4, Article 2, point 8) behaviour (Chapter 4, Article 2, point 9) bonuses (Chapter 4, Article 2, point 10) technical systems (Chapter 4, Article 2, point 12) 2.3.2 know requirements for license applicants in relation to: risk management (Chapter 4, Article 2, point 13) compliance (Chapter 4, Article 2, point 14) internal audit (Chapter 4, Article 2, point 15) 2.3.3 know requirements for license applicants in relation to: information confidentiality (Chapter 4, Article 2, point 17) reporting violations and legal breaches (Chapter 4, Article 2, point 19) 2.3.4 know requirements for license applicants in relation to complaints (Chapter 4, Article 2, point 20) 2.3.5 know requirements for license applicants in relation to: general outsourcing (Chapter 4, Article 2, point 21, First) cloud computing (Chapter 4, Article 2, point 21, Second) outsourcing to an out of state party (Chapter 4, Article 2, point 29, Third) 2.3.6 know record keeping requirements for license applicants (Chapter 4, Article 2, point 22) 12 © Chartered Institute for Securities & Investment Version 4.2  UAE Financial Rules and Regulations Element 3 Investment Funds 3.1 The local fund On completion, the candidate should: 3.1.1 know who can establish local funds (Article 4, Resolution No. 01/Chairman of 2023 concerning the Regulation of Investment Funds) 3.1.2 know the requirement for initial approval from the Authority, the need to publish both an offering document and KIID and the process of final approval (Articles 6, 7 & 12, Resolution No. 01/Chairman of 2023 concerning the Regulation of Investment Funds) 3.1.3 know the reporting requirements for local investment funds (Articles 14 & 15, Resolution No. 01/Chairman of 2023 concerning the Regulation of Investment Funds) 3.1.4 know the additional restrictions for private funds in relation to advertising and promotion and transfer of units (Articles 31 & 32, Resolution No. 01/Chairman of 2023 concerning the Regulation of Investment Funds) 3.2 Provisions Specific to Certain Public Investment Funds On completion, the candidate should: 3.2.1 know regulations relating to: private equity funds (Decision No. (2/R.T) of 2017) venture capital funds (Decision No. (3/R.T) of 2017) general and limited partnership funds (Decision No. (32/R.M) of 2017) 3.3 Cash Investment Funds On completion, the candidate should: 3.3.1 know regulations regarding cash investment funds (Decision No. (52/R.T) of 2016) Version 4.2 © Chartered Institute for Securities & Investment 13  UAE Financial Rules and Regulations 3.4 Exchange Traded Funds On completion, the candidate should: 3.4.1 know regulations relating to exchange traded funds (Decision No. (49/R.T) of 2016) 3.5 Real Estate Funds On completion, the candidate should: 3.5.1 know regulations relating to real estate funds (Decision No. (6/R.T) of 2019) 3.6 Evaluation of In-Kind Shares of Investment Funds (Decision No. (63/R.T) of 2019) On completion, the candidate should 3.6.1 know: in-kind share requirements (Article 1) evaluation requirements (Article 2) evaluator requirements (Article 3) 3.6.2 know the obligations of the evaluator (Article 4) 3.6.3 know the required content of the in-kind shares evaluation report (Article 5) 3.6.4 know obligations of the: management company (Article 6) self-fund founders (Article 6) investment manager (Article 6) 3.6.5 know requirements relating to the expenses of in-kind shares evaluation and transfer of their ownership or usufructuary (Article 7) 14 © Chartered Institute for Securities & Investment Version 4.2  UAE Financial Rules and Regulations Element 4 Markets 4.1 The Central Depository (Decision No. (19/R.M) of 2018) On completion, the candidate should: 4.1.1 know the functions of the Depository Centre (Article 8) 4.1.2 know the obligations of the Depository Centre (Article 10) 4.1.3 know general provisions relating to the Depository Centre (Articles 11 & 12) 4.2 Issuing and Offering Shares in Public Joint-Stock Companies On completion, the candidate should: 4.2.1 know regulations for the issuing and offering of shares of public joint-stock companies (SCA resolution 11/R.M dated 6 June 2016) applications (Article 3) preliminary valuation (Article 4) meetings (Article 5) prospectus and offer (Article 6) receiving subscriptions and building the order book (Article 7) pricing and allotment (Article 8) general provisions (Article 9) 4.2.2 know controls and procedures relating to a company buying back its shares with a view to resell them (Decision No. (40) of 2015) 4.3 Procedures for Dealing with Listed Troubled Joint-Stock Companies (Decision No. (13) of 2020) On completion, the candidate should: 4.3.1 know the conditions for classifying a company within the first category (Article 2) 4.3.2 know the procedures for transferring a listed company between the two categories (Article 3) Version 4.2 © Chartered Institute for Securities & Investment 15  UAE Financial Rules and Regulations 4.3.3 know trading procedures for shares classified in the second category (Article 4) 4.3.4 know about the watch list: purpose (Article 1) monitoring (Article 5) commitments of companies placed on the watch list (Article 6) 4.3.5 know procedures relating to the delisting of shares (Articles 7 & 8) 4.4 Conciliation On completion, the candidate should: 4.4.1 know the controls and procedures of conciliation in offences relating to public shareholding companies (Decision No. (42) of 2015) 16 © Chartered Institute for Securities & Investment Version 4.2  UAE Financial Rules and Regulations 4.5 Debt Securities (Decision No. (17) of 2014) On completion, the candidate should: 4.5.1 know the regulations regarding qualified investors (Article 1) 4.5.2 know the terms regarding the issuing of debt securities: application (Articles 8 & 9) listing conditions – issuer (Articles 4 & 6) listing conditions – debt securities (Article 5) continuing obligations (Articles 19 & 20) suspension and cancellation (Articles 21, 22, 23, 24, 25) 4.6 Islamic Securities On completion, the candidate should: 4.6.1 know regulation regarding the listing and offer of Islamic securities (Decision No. (20/R.M) of 2018) 4.6.2 understand the terms concerning the listing of Islamic bonds (Decision No. (16) of 2014) application (Articles 2 & 7) listing conditions – companies (Articles 4 & 6) listing conditions – Islamic bonds (Article 5) advertisements (Article 12) continuing obligations (Articles 17 & 18) suspension and cancellation (Articles 19–23) 4.7 Derivatives On completion, the candidate should: 4.7.1 know regulations concerning derivatives contracts (Decision No. (22/R.M) of 2018) Version 4.2 © Chartered Institute for Securities & Investment 17  UAE Financial Rules and Regulations 4.8 Crypto Assets (Decision No. (23) of 2020) On completion, the candidate should: 4.8.1 know general obligations in respect of: offering crypto assets (Article 6) offering security tokens (Article 7) listing crypto assets on a crypto asset exchange (Article 8) 4.8.2 know disclosure requirements for: crypto assets (Article 9) security tokens (Article 10) commodity tokens (Article 11) 4.8.3 know the duties and obligations of crypto asset custodians (Article 13) 4.8.4 know fundraising standards for crypto assets standards (Article 14) platforms (Article 15) 4.8.5 know requirements for licensing a crypto asset exchange (Article 16) 4.8.6 know requirements relating to the licensing of crypto assets on a crypto asset exchange (Article 17) 4.8.7 know requirements for financial activities related to crypto assets (Article 18) 4.8.8 know document submission requirements for qualified investors (Article 19) 4.8.9 know the scope of provisions relating to exchange crimes in relation to crypto assets (Article 20) 4.8.10 know: required controls for combating money laundering and terrorism financing in relation to crypto assets (Article 21) applicable technological standards for crypto assets (Article 22) 4.8.11 know the Authority’s powers to control, inspect and penalise (Article 23) 18 © Chartered Institute for Securities & Investment Version 4.2  UAE Financial Rules and Regulations 4.8.12 know requirements relating to: data and information requests (Article 24) complaints and grievances (Article 25) 4.8.13 know the range of penalties for violations: administrative measures (Article 26) penalties (Article 27) publications (Article 28) Element 5 Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations (Federal Law No. 20 of 2018) 5.1 Offences On completion, the candidate should: 5.1.1 know acts considered to constitute the crime of money laundering (Articles 2 & 4) 5.1.2 know acts considered to constitute the crime of financing terrorism (Articles 3 & 4) 5.2 The Role of the Financial Services Industry On completion, the candidate should: 5.2.1 know relevant obligations placed upon financial institutions and designated non-financial business (Articles 15, 16 & 17) 5.2.2 know required customer due diligence (CDD) measures (Decision No. (10/Chairman) of 2019) purpose (Article 5) application (Article 6) ongoing supervision (Articles 7 & 12) methods (Article 8) high risk countries (Article 22) Version 4.2 © Chartered Institute for Securities & Investment 19  UAE Financial Rules and Regulations 5.2.3 know requirements regarding establishing beneficial ownership (Decision No. (10/Chairman) of 2019) (Articles 9, 10 & 11) 5.3 Prohibitions On completion, the candidate should: 5.3.1 know the types of business that financial institutions and DNFBPs are prohibited from engaging with (Decision No. (10/Chairman) of 2019) (Articles 13 & 14) 5.4 Politically Exposed Persons (PEPs) On completion, the candidate should: 5.4.1 know the definition of a PEP (Decision No. (10/Chairman) of 2019) (Article 1) 5.4.2 know required measures for PEPs (Decision No. (10/Chairman) of 2019) (Article 15) 5.5 Suspicious Transaction Reports (STRs) On completion, the candidate should: 5.5.1 know requirements relating to STRs (Decision No. (10/Chairman) of 2019) (Articles 16, 17 & 18) 5.6 Practical Measures On completion, the candidate should: 5.6.1 know requirements for financial institutions and DNFBPs relying on third party service providers (Decision No. (10/Chairman) of 2019) (Article 19) and business development (Article 23) 5.6.2 know internal supervision measures for financial institutions and DNFBPs and for those with foreign branches and subsidiaries (Decision No. (10/Chairman) of 2019) (Article 20) 5.6.3 know required tasks undertaken by the compliance officer (Decision No. (10/Chairman) of 2019) (Article 21) 20 © Chartered Institute for Securities & Investment Version 4.2  UAE Financial Rules and Regulations 5.7 Record Keeping Requirements On completion, the candidate should: 5.7.1 know record keeping requirements (Decision No. (10/Chairman) of 2019) (Article 24) 5.8 Penalties On completion, the candidate should: 5.8.1 know the range of administrative penalties for financial institutions and designated non-financial business that violate Federal Law No. 20 and its executive regulation (Article 14) 5.8.2 know the criminal penalties for any person considered to be a perpetrator of money laundering (Article 22) 5.8.3 know the criminal penalties for perpetrators of money laundering that: abuse their influence (Article 22) does so through their employment or professional status (Article 22) commits the crime via a non-profit organisation (Article 22) is part of a criminal enterprise (Article 22) is a repeat offender (Article 22) 5.8.4 know the criminal penalties for any person who launders money for the financing of: terrorism (Article 22) illegal organisations (Article 22) 5.8.5 know the criminal penalties for any legal person considered to be a perpetrator of: money laundering (Article 23) financing terrorism (Article 23) financing illegal organisations (Article 23) 5.8.6 know the penalty for failing to comply with suspicious transaction reporting obligations (Article 24) Version 4.2 © Chartered Institute for Securities & Investment 21  UAE Financial Rules and Regulations 5.8.7 know: the offence of tipping off (Article 25) the penalty for tipping off (Article 25) 5.9 Market Abuse and Market Conduct Accepted Practice in the UAE On completion, the candidate should: 5.9.1 understand the regulations in relation to market abuse in the UAE (Article 16 of the Regulations as to Trading, Clearing, Settlement, Transfer of Ownership and Custody of Securities and Article 37 of the Regulations as to Disclosure and Transparency) 5.10 Conflicts of Interest Accepted Practice in the UAE On completion, the candidate should: 5.10.1 understand the rules on Chinese walls: control of information effect of the rules attribution of knowledge 5.10.2 know the rules on managing conflicts of interest in connection with investment research and research recommendations: application implementation conditions exemptions 22 © Chartered Institute for Securities & Investment Version 4.2  UAE Financial Rules and Regulations Element 6 Client Protection 6.1 Suitability Standards (Suitability and Appropriateness Standards (Decision No. (05/Chairman) of 2020)) On completion, the candidate should: 6.1.1 know the suitability standards (Article 3) 6.1.2 know the content required in a suitability report (Article 4) 6.1.3 know obligations for licensed entities (Article 5) 6.2 Appropriateness Standards (Suitability and Appropriateness Standards (Decision No. (05/Chairman) of 2020)) On completion, the candidate should: 6.2.1 know the appropriateness standards (Article 6) 6.2.2 know the content required in an appropriateness report (Article 7) 6.2.3 know obligations for licensed entities (Article 8) 6.3 Client Assets Accepted Practice in the UAE On completion, the candidate should: 6.3.1 understand the purpose of the client money and custody rules including the requirement for segregation and that it is held in trust: holding client assets and client money protection organisational arrangements registration and recording of legal title statutory trust Version 4.2 © Chartered Institute for Securities & Investment 23  UAE Financial Rules and Regulations 6.3.2 know the requirements for reconciling client assets and client money including the timing and identification of discrepancies: assets and money held by the firm assets and money held by third parties frequency discrepancies notification to the SCA 6.4 Client Communications, Reporting, Financial Promotions and Advertising Accepted Practice in the UAE On completion, the candidate should: 6.4.1 understand the rules relating to communications with clients 6.4.2 know the rules relating to fair, clear and not misleading communications and financial promotions 6.4.3 know the general client reporting and occasional reporting requirements 6.4.4 know the rules on periodic reporting; the additional requirements regarding contingent liability transactions; the exceptions and record keeping requirements 6.4.5 understand the purpose and application of the financial promotion rules 6.4.6 know the firm’s responsibilities under the financial promotion rules regarding the use of appointed representatives 24 © Chartered Institute for Securities & Investment Version 4.2  UAE Financial Rules and Regulations 6.5 The Organization of Promotion and Introduction (Decision No. (3/R.M) of 2017) On completion, the candidate should: 6.5.1 know obligations of the promoter relating to: financial product promotion (Article 9) promotion material (Article 10) ongoing-obligations (Article 11) promotion of foreign funds (Article 12) 6.5.2 know obligations of the introducer (Chapter IV) 6.6 Regulations for Special Purpose Acquisition Companies (Resolution No. (01/Chairman) of 2022) On completion, the candidate should: 6.6.1 know: permitted activities for Special Purpose Acquisition Companies (Article 3) classification of Special Purpose Acquisition Companies (Article 4) exemptions to the commercial companies law (Article 5) 6.6.2 know public subscription procedures for Special Purpose Acquisition Companies: public subscription procedures (Article 7) public subscription of the Special Purpose Acquisition Company (Article 8) 6.6.3 know requirements for: allotment (Article 9) certificate issue and registration (Article 10) listing (Article 11) 6.6.4 know requirements for Special Purpose Acquisition Companies in relation to: Version 4.2 © Chartered Institute for Securities & Investment 25  UAE Financial Rules and Regulations public subscription proceeds (Article 12) offering shares and warrants after listing (Article 13) 6.6.5 know requirements for Special Purpose Acquisition Companies in relation to: business consolidation (Articles 14,15,17 and 18) redemption (Article 16) Element 7 Trading 7.1 Abu Dhabi Securities Market ADX On completion, the candidate should: 7.1.1 know the E-Trading regulations (E-Trading Regulations) 7.1.2 know regulations governing remote access to the Abu Dhabi Securities Exchange by foreign brokerage companies (Abu Dhabi Securities Exchange Foreign Brokerage Companies Remote Access Regulations) 7.2 Broker and Trading Rules of the ADX On completion, the candidate should: 7.2.1 know brokerage companies reporting requirements for the ADX (Article 11) 7.2.2 know obligations of brokers towards client orders (Articles 17-19) 7.2.3 know rules concerning debt instruments (Article 47) 7.2.4 know requirements for big block deals (Article 48) 7.3 Clearing, Depository and Registry Rules On completion, the candidate should: 7.3.1 know the role of the Clearing, Settlement and Depository Department (CSD) (Articles 3–9) 7.3.2 know regulations relating to the register deposit (Articles 11 & 12) 26 © Chartered Institute for Securities & Investment Version 4.2  UAE Financial Rules and Regulations 7.3.3 know regulations concerning investor numbers and accounts (Articles 13–20) 7.3.4 know regulations concerning: the deposit of securities certificates (Articles 21–24) allotment letters (Article 25) 7.3.5 know regulations concerning deposit accounts at the CSD (Articles 26–29) 7.3.6 know regulations concerning settlement collateral (Articles 31–34) 7.3.7 know regulations concerning clearing and settlement (Articles 35– 46) 7.3.8 know regulations governing the pledging of securities (Articles 49– 56) 7.4 Clearing Operations in Commodities Markets On completion, the candidate should: 7.4.1 understand the regulations of clearing operations in commodities markets (SCA resolution No. (11) of 2015)) license conditions (Article 3) obligations of the commodities CCP (Article 10) risk management (Article 11) Version 4.2 © Chartered Institute for Securities & Investment 27  UAE Financial Rules and Regulations 7.5 Dubai Gold & Commodities Exchange On completion, the candidate should: 7.5.1 know delivery months for products traded on the Dubai Gold & Commodities Exchange: Gold Futures (I.4.1) India Gold Quanto Futures (I.5.1) Shanghai Gold Futures (I.6.1) Silver Futures (J.4.1) Crude Oil Futures (N.5.1, N.6.1, N.7.1, N.8.1) Equity Index Futures and Options (P.6.1) 7.5.2 know details of Gold Futures: contract size (I.4) minimum price movement (I.4.2) last trading day (I.4.3) final cash settlement price (I.4.4) cash settlement day (I.4.5) 7.5.3 know details of India Gold Quanto Futures: contract size (I.5) minimum price movement (I.5.2) last trading day (I.5.3) final cash settlement price (I.5.4) cash settlement day (I.5.5) 7.5.4 know details of Shanghai Gold Futures: contract size (I.6) minimum price movement (I.6.2) last trading day (I.6.3) final cash settlement price (I.6.5) 28 © Chartered Institute for Securities & Investment Version 4.2  UAE Financial Rules and Regulations cash settlement day (I.6.6) 7.5.5 know details of Silver Futures: contract size (J.4) minimum price movement (J.4.2) last trading day (J.4.3) final cash settlement price (J.4.4) cash settlement day (J.4.5) 7.5.6 know details of West Texas Intermediate (WTI) Light Sweet Crude Oil Futures: contract size (N.5) minimum price movement (N.5.2) last trading day (N.5.3) final cash settlement price (N.5.4) cash settlement day (N.5.5) 7.5.7 know details of Brent Crude Oil Futures: contract size (N.6) minimum price movement (N.6.2) last trading day (N.6.3) final cash settlement price (N.6.4) cash settlement day (N.6.5) 7.5.8 know details of DGCX Mini West Texas Intermediate (WTI) Light Sweet Crude Oil Futures: contract size (N.7) minimum price movement (N.7.2) last trading day (N.7.3) final cash settlement price (N.7.4) cash settlement day (N.7.5) Version 4.2 © Chartered Institute for Securities & Investment 29  UAE Financial Rules and Regulations 7.5.9 know details of Dubai India Crude Oil Quanto Crude Oil Futures: contract size (N.8) minimum price movement (N.8.2) last trading day (N.8.3) final cash settlement price (N.8.4) cash settlement day (N.8.5) 7.5.10 know details of MSCI India Index Futures (INR) contract size (P.6) minimum price movement (P.6.2) last trading day (P.6.3) 7.5.11 know rules concerning errors in an equity index (P.5) 30 © Chartered Institute for Securities & Investment Version 4.2  UAE Financial Rules and Regulations Element 8 Dubai Financial Market (DFM) 8.1 Brokerage Firms On completion, the candidate should: 8.1.1 know the obligations of brokerage firms towards DFM and SCA (Article 7) 8.1.2 know the obligations of brokerage firms towards their clients (Article 8) 8.1.3 know regulations that apply to: trading members (Article 10) trading and clearing members (Article 11) failed settlement (Article 9) 8.2 Rules of Securities Trading in the DFM On completion, the candidate should: 8.2.1 know the rules governing order handling (Articles 2 & 3) 8.2.2 know brokers reporting requirements (Article 5) 8.2.3 know the rules relating to: conflicts of interest (Article 6) insider trading (Article 7) board members (Article 7) misleading information (Article 8) articles of association of an issuer (Article 9) mistakes (Article 11) cancellations (Article 12) brokers representatives (Article 15) 8.2.4 know settlement requirements (Article 10) Version 4.2 © Chartered Institute for Securities & Investment 31  UAE Financial Rules and Regulations 8.3 The Professional Code of Conduct (DFM) On completion, the candidate should: 8.3.1 know brokerage firms’ obligations in relation to their employees and representatives (Article 2) 8.3.2 know brokerage firms’ obligations in relation to client due diligence (Article 3) 8.3.3 know brokerage firms’ obligations in relation to: fairness (Article 4) order taking (Article 4) confidentiality (Article 4) segregation (Article 4) call recording (Article 4) complaints (Article 4) suspicious activity (Article 4) market data (Article 4) 8.3.4 know prohibited actions (Article 5) 8.3.5 know record keeping requirements (Article 8) 8.4 Online Trading Regulations (DFM) On completion, the candidate should: 8.4.1 know how price limits are applied (Article 1) 8.4.2 know activities carried out during the: pre-opening session (Article 3) opening session (Article 4) 8.4.3 know activities carried out during the trading session (Article 5) 8.4.4 know activities carried out during the: pre-closing session (Article 6) closing session (Article 7) 32 © Chartered Institute for Securities & Investment Version 4.2  UAE Financial Rules and Regulations 8.5 Order Types (DFM) On completion, the candidate should: 8.5.1 know the following order types: limit (Article 8) market (Article 8) 8.5.2 know the following order conditions: day order (Article 9) good-till-cancelled (Article 9) immediate-or-cancel (Article 9) good-till-date (Article 9) at-the-close (Article 9) orders without time-limits (Article 9) fill-or-kill (FOK) (Article 10) fill-and-kill (FAK) (Article 10) 8.6 Order Handling (DFM) On completion, the candidate should: 8.6.1 know the correct method for order prioritisation (Articles 11, 12, 13 & 14) Version 4.2 © Chartered Institute for Securities & Investment 33