SCA Study Guide 2026

Discretionary investment management means the fund manager has authority to make investment decisions on the client's behalf without needing prior approval for each trade, within agreed parameters. This requires SCA licensing.

Front running is the prohibited practice where a broker or trader executes trades in their own account knowing that a large client order is about to move the market price, allowing them to profit at the client's expense.

Market manipulation involves deliberate actions to create artificial prices, false trading activity, or misleading impressions about securities to deceive investors. It is prohibited under UAE securities law and subject to criminal penalties.

EDD is a more rigorous level of customer due diligence applied when the risk of money laundering is higher — for example, politically exposed persons (PEPs), customers from high-risk jurisdictions, or complex ownership structures.

A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an asset at a predetermined price on a specific future date. Both parties are obligated to fulfill the contract.

Disclosure requirements mandate that listed companies publicly release all material information — financial results, major events, ownership changes — that could affect their share price, ensuring all investors have equal access to relevant information.