Media ININ Economy We Trust
” MEDIA, Abu Dhabi, Sept. 9, 2018 (WAM)
Sultan bin Saeed Al Mansouri, Minister of Economy and Chairman of the Securities and Commodities Authority (SCA), issued a decision on the adoption of the regulatory framework for financial technology / regulations for the experimental environment, which will come into force on the second day of its publication in the Official Gazette. The objective of this document is to define the regulatory framework for the operation and management of the experimental capital market environment, in order to create an attractive environment for capital markets using innovative systems, and to enable them to interact with financial technology companies, improve the regulatory framework, contribute to economic growth and regulate risk. The experimental environment is defined as a pilot financial technology laboratory organized into a regulatory framework that allows entities to test innovative products, services, programs and business models in a simplified experimental control environment, within a limited and time-bound scope and timeframe. As part of the UAE’s National Innovation Strategy, which aims to provide and stimulate an enabling environment for innovation, the Securities and Commodities Authority (ESCA) has expressed its keenness to promote and support the concept of innovation and enable it to develop an enabling regulatory framework. The Commission will work with applicants in the pilot environment to evaluate innovative products, services, programs or business models and identify legal and regulatory requirements that can be mitigated or waived during the period of participation in the pilot environment, and will be assessed on a case-by-case basis. The test period extends from 6 to 12 months in order to be able to provide an adequate vision for the organization to understand innovation and its impact on consumers and the financial sector, allowing both the TRA and the participant to understand the feasibility of this innovation.
