Wednesday , August 4 2021

The United Arab Emirates expects legislative and regulatory momentum in 2019



15 11 2018

OBAID Al Zaabi, CEO of the Securities and Goods Authority (SCA), expects the Commission to monitor legislative and regulatory dynamics in 2019 by issuing a large number of laws and regulations.

Along with new products and services to provide a modern and integrated system in line with international best practices.

Speaking to reporters on the sidelines of the annual International Monetary Reconstruction Organization launched yesterday in Dubai, the Commission expects a series of regulations to be issued next year, including the issue of digital currencies and stocks, stock options and derivatives and collective funding.

He added that the Commission bill has reached advanced stages and currently awaits receipt of opinions from legal offices in the specialized state following the responses it received through its website from the stakeholders and companies expected to be presented to the Board of Directors of the Authority at the end of November.

He stressed that the vision looks "bright" for the country's capital markets next year, reflecting the positive prospects for the economic situation today, especially with strong macroeconomic growth indicators.

Strong performance

He noted that these prospects are in the form of strong performance that exceeds the expectations and the rise of the IMF and the World Bank to increase growth expectations in the country as well as improving oil prices as well as government incentives that contribute to growth of the financial markets and increase foreign investment and high transaction values ​​and volumes.

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He stressed that the trend for further development of financial market systems in the coming year as well as the provision for increased foreign investment is supported by the adoption of the law on foreign investment and the political stability and economy that the state enjoys. He points out that there are 4 applications to introduce new companies ready to be placed on the local capital markets, adding that their decision returns them when determining the date of introduction.

New law

A new law on the regulation of the issuance of digital assets is expected to be issued in the first half of 2019. Work has been launched to provide appropriate regulatory solutions and tools in consultation with international organizations such as the IOSCO (International Organization of Securities Commissions).

He added that the Authority is preparing a new plan to develop an electronic licensing system for businesses that provides access by telephone or website, adding that the integrated system is linked to the Ministry of Economy and Finance and all the partners involved and is expected to start at end of January.

He added that the Authority plans to make alternatives and derivatives in 2019, where a foreign legal firm is currently being consulted, noting that the draft securitization scheme is still undergoing consultations and comments and is in the process of drafting.

And then on the Board of Directors. He said the Authority intends to formally issue an extraordinary share system next year after agreeing and coordinating with the Ministry of Economy and preparing the bill and procedures and submitting it to the competent authorities to study and take action on it.

The behavior of a criminal

Points out that misleading investors are considered to be criminal conduct in accordance with the law of the Commission and the Companies Law and stressed that the Commission is using all technical and non-traditional tools to protect investors from any manipulation and explains that the new structure provides units for monitoring daily news and linking them to trading.

It therefore analyzes the existence of any correlation between internal and other transactions and takes action in case of irregularities.

The Commission publishes the names of the offenders through its website in line with international practices as well as by tracking offenders on the social networking site and measures have been taken against the non-accredited economic analyst. It revealed that the Authority has achieved a tangible achievement this year by reducing the rate of violations by 90%, especially violations.

Classification

The Securities and Markets Authority (SCA) is currently in the process of developing a rating system for financial services companies in order to create a competitive environment that encourages them to increase their institutional capabilities and apply the concept of innovation to the quality of their activities and services.

© Declaration 2018


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