The United Arab Emirate Securities and Commodities Authority has embarked on efforts to restructure the licensing system for broker classification.
SCA enhancing financial brokerage models
This is part of the SCA’s efforts to enhance the functions and roles of licensed firms and implement the integrated financial services model in line with global practices and enhance investor confidence. The dramatic restructuring of the licenses the SCA issues aims at enhancing the financial brokerage models that include forex brokers.
The SCA’s CEO, Dr. Obaid Saif Al Zaabi, launched the new initiative as part of the agency’s integrated approach that it is pursuing in upgrading financial brokerage markets that operate in UAE. They want to have a developed market status, which will help in realizing the UAE Government Strategy 2020 goals. The SCA went ahead with the restructuring following comprehensive consideration of best practices that are applying globally. The process was spearheaded by Licensing and Supervision Executive Director, Khaled Ghaith Al Zaabi. A team of national employees drafted pieces of legislation following the restructuring to align it with practices in other advanced markets globally.
SCA wants to create competitive markets
Most importantly, the initiative aims to enhance accredited firms’ infrastructure to help them meet their obligations to domestic and foreign investors. This will also help attain advanced maturity levels for financial services firms, which will enable them to compete with rivals from developed markets. The SCA wants to create competitive markets for the companies to attain higher excellence levels, thus attracting investors because of the capability to offer high-end impartial and transparent services.
The project needs the financial investment services firms to have enhanced capacity to offer integrated services in various financial markets in UAE. This will be in line with professional and scientific bases built on a comprehensive strategy to offer the best services in financial markets and to investors as well as a hedge against operational and market risks. Following the restructuring, the SCA introduced securities, investment, credit rating, counseling, arrangement, and safekeeping, registration, and clearing categories.