“Securities” adopts the general clearing member activity system and makes amendments to four regulations

Abu Dhabi 21-09-2019
The Board of Directors of the Securities and Commodities Authority (SCA) held its 11th meeting of the sixth session of the SCA at its headquarters in Dubai under the chairmanship of Sultan bin Saeed Al Mansouri, Minister of Economy and Chairman of the Board of Directors.
The meeting discussed a number of initiatives aimed at developing the system of financial services and activities related to the securities sector in the country to match the best international standards and practices.
The meeting dealt with a number of important issues and issues related to the securities sector. The Board approved the issuance of a special regulation to regulate the activity of the general clearing member in an effort to develop the mechanism of practicing the clearing member through the issuance of an integrated system.
The system consists of 16 articles including: definitions, scope of application, license conditions, license application, license duration and renewal, license cancellation, liquidation or use of the guarantee, the rules of procedure of the general clearing member, the obligations of the general clearing member towards the Authority, and the obligations of the general clearing member With the contracting authority and its customers, control and inspection, complaints and sanctions.
In view of the Authority’s keenness to develop the legislations that regulate the functioning of the financial markets in the country, and in view of the Authority’s review of the regulations and legislation governing the circulation of securities on a regular basis to ensure that these regulations keep pace with the levels of development in the international markets, Regulation I: Requirements for financial reports of the activities licensed by the Authority, where the amendment was made to ensure the consolidation of the financial reports required by the licensed companies for all financial activities licensed by the Authority, and to facilitate the supervision and supervision of those activities, Taking into account the requests received by the Authority from the banks regarding their exemption from the submission of some financial reporting requirements.
Accordingly, the requirements of the financial reports submitted by the licensed companies have been standardized and the necessary amendments have been made to 12 regulations. The regulations affected by the amendment relate to the activities under the control and supervision of the Authority, namely: listing and trading of commodities and commodity contracts, financial consulting and financial analysis, and custody of securities. Investment Management, Securities Brokerage, Commodity Clearing, Regulation of Central Clearing Company, Regulation and Promotion, Investment Fund Administrative Services, Licensing of Credit Rating Agencies, Central Depository Activity S investment.
The second is the definition of a qualified investor. The amendment, which has been developed with the best international best practices, has updated the categories that fall within the concept of “qualified investor”, which will give these categories more flexibility in making their investment decisions as qualified investors with wide financial experience. Or great solvency.
The standardization of the definition of a qualified investor shall result in an amendment to the three regulations mentioned in the definition of a “qualified investor”: the system of investment funds, the system of offering and issuing shares of public shareholding companies, and the decision to organize promotion and definition.
A qualified investor according to the new definition is a person who is capable of managing his own investments in accordance with the five conditions laid down by the new definition of the legal person and the three conditions set for the natural person, in addition to the natural person approved by the Authority or by a similar supervisory body for the purpose of performing any of the tasks related to the activities and services. Finance.
Third, the definition of material information, where the Council also agreed to amend the definition of “material information”, and to make some additional amendments to some cases that are considered to be essential information in a number of regulations of the Commission, and amend some of the regulations issued by the Commission to comply with the new definition of special system Disclosure and transparency, the system of securities brokerage, standards of institutional discipline and governance of public shareholding companies, and the system of trading, clearing, settlement, transfer of ownership and custody of securities.
Fourth Regulation: Amendment of the Authority’s Board Decision No. / 2 / of 2001 concerning the Regulation on Trading, Clearing, Settlement, Transfer of Ownership and the Preservation of Securities in order to ensure the consistency and complementarity of the legislations issued by it in terms of standardization of terms and complementarity of provisions. CMA Board of Directors Decision No. / 2/2001 concerning the system of trading, clearing, settlement, transfer of ownership and custody of securities / deletion, addition, amendment of text and wording /, in order to comply with the proposed amendments to the definition of material information referred to above, as well as the general clearing project J was approved at the beginning of this meeting.
In line with the Authority’s keenness to protect the rights of investors in securities and face the problems of troubled companies, the Board of Directors of the Authority approved a proposal to support the rights of investors in securities, which is summarized in three main axes of adding a set of conditions and restrictions to organize the request for the inclusion of new issues in the agenda of the Assembly Shareholders representing 10% of the Company’s capital through the amendment of Article (28) of the Authority’s Chairman’s Decision No. / 7 / RM / 2016 on the standards of corporate discipline and corporate governance.
Accordingly, the Board approved the amendment of Article 28 of the CMA Chairman’s Decision No. / 7 / RM / 2016 on “Institutional Discipline Standards and Governance of Public Shareholding Companies” in the light of the findings of the study presented to it by adding a number of Conditions and restrictions for requesting the inclusion of a new item on the agenda of the General Assembly.
The Board was also briefed on a study on global practices on strategies of market bodies