SCA UAE Securities Regulation Framework 2

Question 1

How does the SCA cooperate with other UAE financial regulators?

Accepted Answer

MoUs with CBUAE, DFSA (DIFC), ADGM FSRA, and international regulators (IOSCO) for information sharing, enforcement cooperation, and regulatory harmonization

Answer

No cooperation exists between regulators

Answer

SCA is the only financial regulator in the UAE

Answer

Cooperation is only with international bodies

Question 2

What is the SCA's approach to FinTech and digital securities?

Accepted Answer

SCA has developed regulatory frameworks for crowdfunding platforms, digital asset trading, and is exploring blockchain applications for capital markets

Answer

SCA prohibits all FinTech

Answer

No regulations exist for digital securities

Answer

Only conventional securities are regulated

Question 3

What are the SCA's enforcement powers for market violations?

Accepted Answer

Impose fines, suspend or revoke licenses, refer for criminal prosecution, suspend trading, and order compensation for affected investors

Answer

SCA has no enforcement powers

Answer

Only verbal warnings are issued

Answer

Enforcement is handled by the police only

Question 4

What is the SCA regulation on foreign portfolio investment in UAE markets?

Accepted Answer

Foreign investors can trade on UAE exchanges subject to ownership limits (varying by company), registration requirements, and compliance with SCA regulations

Answer

Foreign investment is prohibited

Answer

No restrictions exist for foreign investors

Answer

Only GCC nationals can invest

Question 5

What market surveillance system does the SCA operate?

Accepted Answer

Electronic surveillance monitoring trading patterns, price movements, and volume anomalies to detect market manipulation, insider trading, and other abuses

Answer

No market surveillance exists

Answer

Only manual review of complaints

Answer

Surveillance is conducted by the exchanges only

Question 6

What ESG (Environmental, Social, Governance) reporting requirements has the SCA introduced?

Accepted Answer

Listed companies must publish ESG reports covering environmental impact, social responsibility, governance practices, and sustainability metrics

Answer

No ESG requirements exist

Answer

ESG reporting is voluntary

Answer

Only environmental reporting is required