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

To provide securities brokerage services in the UAE (outside of DIFC/ADGM), a company must obtain a brokerage license from the SCA. Operating without this license is a violation of UAE securities law.

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

The SCA sets minimum capital requirements for licensed entities through Board Decisions, and these requirements vary by category of license (brokerage, investment management, etc.). Specific amounts are determined by SCA regulations.

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

A compliance officer ensures the firm adheres to all applicable laws, SCA regulations, and internal policies. They monitor activities, train staff, file regulatory reports, and act as the primary contact with the SCA.

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

SCA-licensed firms must submit financial reports periodically as required by SCA regulations — typically quarterly and annual audited financial statements, plus immediate disclosure of material events.

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

KYC is a regulatory requirement for licensed firms to verify the identity of their clients, understand their financial situation, investment objectives, and risk tolerance before providing investment services. It helps prevent fraud and money laundering.

SCA Practice Test

SCA Practice Test

SCA SCA Regulations & Compliance