Published: August 2022
TThe Securities and Commodities Authority (the “SCA”) has made further amendments to SCA Resolution No. 13 of 2021 (the “Rulebook”) following the amendments in May and June 2022. To recall the amendments, the SCA initially introduced five broad categories of licensed financial activities and subsequently introduced a Sixth Category (Crowdfunding Platform Operator) in June 2022 pursuant to SCA Chairman of the Board of Directors No. (11/RM) of 2022.
The SCA has now issued SCA Decision of the Board of Directors No. (18/RM) of 2022 (the “Decision”) in July amending the licensing requirements applicable to five licensing categories. The following are the material amendments:
Free Zone: permitting companies established within free zones in the UAE to apply for any of the five licensing categories provided that the regulations of the specific free zone permits for such licensing;
Second Category: removing the requirement that a licensed entity must be a private joint stock company. Further, significantly reducing the capital requirement of the activities from AED 50 million, to AED 1 million to AED 4 million, depending on the relevant financial activity; and
Fifth Category: the SCA previously did not require any capital requirements for this category and has now set the capital requirements at AED 2.5 million.
The Decision shall come into force once published in the Official Gazette.
How we can help
Al Tamimi & Company’s Banking and Finance practice continues to work closely with the SCA in relation to the licensing of financial activities in the UAE. Our team can assist and support you with the SCA licensing process and adequately advice on any requirements and obligations that may apply in connection with the SCA’s amendments.
Key Contacts
Divya Abrol Gambhir
Partner
d.abrol@tamimi.com
Ali Awad
Senior Counsel
a.awad@tamimi.com