SCA Cheat Sheet 2026
The 19 highest-yield SCA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.
- In a T+2 settlement cycle, if an equity trade is executed on a Monday with no intervening public holidays, on which day does settlement occur? → Wednesday
- Under UAE law, which entities are subject to SCA regulation? → Companies listed on UAE exchanges, brokers, and investment service providers
- What is the maximum penalty under UAE law for insider trading? → Imprisonment and/or fines
- What is the standard settlement cycle for equity securities traded on SCA-regulated UAE financial markets? → T+2 (two business days after trade date)
- What is the SCA's requirement regarding record-keeping for licensed entities? → Records must be kept for at least 5 years as specified by SCA regulations
- What does 'Delivery versus Payment' (DvP) mean in the context of securities settlement? → Securities are transferred and cash is paid simultaneously, eliminating principal risk
- What is the relationship between bond prices and interest rates? → They move in opposite directions — when rates rise, bond prices fall
- What is the SCA's minimum capital requirement for a licensed broker? → Determined based on activities and set by SCA Board Decision
- What is the primary federal law governing the UAE securities market? → Federal Law No. 4/2000
- What is the role of the compliance officer in an SCA-licensed firm? → To ensure the firm operates in accordance with all applicable laws and SCA regulations
- What are the three stages of money laundering? → Placement, layering, and integration
- What type of license does a company need from the SCA to provide brokerage services in the UAE? → An SCA brokerage license
- What is money laundering? → The process of making illegally obtained money appear to come from a legitimate source
- What is the main objective of the SCA under Federal Law No. 4/2000? → To regulate and develop the securities and commodities markets in the UAE
- Which year was Federal Law No. 4/2000 substantially amended by Federal Law No. 4/2002? → 2002
- What does CFT stand for in the context of AML/CFT? → Countering the Financing of Terrorism
- What is an 'insider' under UAE securities regulations? → A person who has access to non-public, price-sensitive information about a listed company
- Which of the following best describes the concept of 'market manipulation' under UAE law? → Deliberately creating artificial prices or trading volumes to deceive investors
- What does AML stand for in financial regulation? → Anti-Money Laundering
Turn these facts into recall: