SCA SCA Regulations & Compliance

Question 1

What type of license does a company need from the SCA to provide brokerage services in the UAE?

Accepted Answer

An SCA brokerage license

Answer

A Central Bank license

Answer

A Ministry of Economy license

Answer

A DFSA license

Question 2

What is the SCA's minimum capital requirement for a licensed broker?

Accepted Answer

Determined based on activities and set by SCA Board Decision

Answer

AED 100,000

Answer

AED 500,000

Answer

AED 5,000,000

Question 3

What is the role of the compliance officer in an SCA-licensed firm?

Accepted Answer

To ensure the firm operates in accordance with all applicable laws and SCA regulations

Answer

To manage client investments

Answer

To process trade orders only

Answer

To handle customer complaints only

Question 4

How often must SCA-licensed firms submit financial reports to the SCA?

Accepted Answer

Monthly and annually, as required by SCA regulations

Answer

Only annually

Answer

Only when requested by the SCA

Answer

Every five years

Question 5

What is 'know your customer' (KYC) in the context of UAE financial services?

Accepted Answer

The regulatory requirement to verify client identity and assess their financial situation and investment objectives

Answer

A marketing strategy to attract clients

Answer

A sales technique

Answer

A method of calculating commissions

Question 6

What is a 'fit and proper' requirement in SCA licensing?

Accepted Answer

Criteria ensuring that key personnel have the qualifications, experience, integrity, and financial soundness to operate in capital markets

Answer

A physical fitness test for employees

Answer

A requirement that trading floors meet safety standards

Answer

A test of the company's IT systems