Investment Products and Funds Flashcards

What is the SCA's regulatory framework for bond and sukuk issuance?

Answer: Issuers must file a prospectus with the SCA, meet disclosure requirements, obtain credit ratings, and comply with ongoing reporting obligations

The SCA regulates bond and sukuk issuance through prospectus requirements, issuer eligibility criteria, credit rating obligations, trustee appointment, investor protection mechanisms, and continuous disclosure obligations.

What are the SCA regulations on derivatives and structured products?

Answer: SCA has established a framework for regulated derivatives trading including futures, options, and structured products with specific licensing, margin, and reporting requirements

The SCA has developed derivatives regulations covering exchange-traded and OTC derivatives, requiring participant licensing, margin requirements, position limits, trade reporting, and central clearing for standardized products.

What fund governance requirements does the SCA establish?

Answer: Independent board members, conflicts of interest management, valuation policies, risk management frameworks, and investor communication standards

SCA fund governance requires independent board representation, conflicts of interest policies, independent valuation procedures, risk management frameworks, regular investor communication, and compliance monitoring.

What is the SCA framework for crowdfunding platforms?

Answer: SCA licenses and regulates equity and lending crowdfunding platforms with investor limits, issuer requirements, disclosure obligations, and platform governance standards

The SCA has established a regulatory framework for crowdfunding platforms covering: platform licensing, investor contribution limits, issuer eligibility and disclosure, platform governance, and investor protection mechanisms.

What are the SCA regulations on foreign fund marketing in the UAE?

Answer: Foreign funds must be registered or recognized by the SCA before being marketed to UAE investors, with specific documentation and local representative requirements

Foreign funds must obtain SCA recognition or registration before marketing to UAE investors, providing translated documentation, appointing a local representative, and meeting minimum regulatory standards from their home jurisdiction.

What anti-fraud protections does the SCA provide for fund investors?

Answer: Prospectus accuracy requirements, independent custody, regular valuation and reporting, NAV calculation standards, and penalties for fraudulent misrepresentation

SCA anti-fraud protections include: mandatory accurate prospectus disclosure, independent custody of assets, regular independent valuation, standardized NAV calculations, audit requirements, and severe penalties for fraudulent activities.