“Securities: 19 condition to avoid misleading investment promotion campaigns

06-03-2019 Media in\ Abu Dhabi
The Securities and Commodities Authority (SCA) has set 19 conditions that investors must adhere to as they are not victims of false advertising and misleading investment promotion campaigns.
The guidelines included the need for the investor to verify the licensing and accreditation data of the investment manager, “the institution that provides the investment management services” and the promoter “the institution that promotes the investment” and obtaining the necessary licenses from the regulatory authorities, in addition to the need to ignore the promotional offer in the absence of satisfaction when dealing with them.
The Authority called on investors to avoid disclosing important personal data such as bank accounts, credit cards, passport or identity numbers or signing any documents submitted by the investment manager or promoter prior to knowing that they have obtained a work permit.
The Commission stressed the need to request the investment prospectus, guide, guidance or prospectus for the offered investments, read the investment risks section of the prospectus and the contents of assets, channels and types of investment.
The Authority called on investors to avoid paying any money or entering into investment contracts they do not know, and also warned against delving behind false promises to achieve quick wealth and large returns or to respond to lobbyists’ lobbying efforts.
The list of guidelines also included the need to communicate directly with the competent regulatory authorities in the UAE such as the Securities and Commodities Authority, the Central Bank of Emirates, the Insurance Authority, the Dubai Financial Services Authority and the Financial Services Regulatory Authority in the Abu Dhabi Global Market to report any suspicious advertising or promotion campaigns or suspicious activities.