SCA board approves a decision regarding controls for publishing warnings
As part of its efforts to develop the financial services and activities relevant to the securities sector to bring them in line with the best international standards and practices, the board of the Securities and Commodities Authority (SCA) approved a decision regarding controls for publishing warnings.
The SCA board held its 14th meeting, chaired by H.E. Eng. Sultan bin Saeed Al Mansoori, Minister of Economy and Chairman of the SCA board, at the SCA Dubai branch.
At the meeting, the board discussed a number of important topics and issues relevant to the securities sector, as well as other matters as follows:
A Decision Regarding Controls for Publishing Warnings
Given that some corporations or natural persons, who do not fall under SCA's supervision, undertake financial activities or provide capital market-related services to the public without a license or an approval to do so, thus violating SCA's regulations in force, a decision was approved to safeguard the public against any incorrect, misleading, or suspicious financial transactions or business practices by such corporations or persons. The decision contains a set of controls, devised in line with the best international practices, regarding publishing warnings for the public.
According to Article (1) of the decision, SCA may publish the name of the natural or legal person, local or foreign, who engages in unsound or illegal capital market-related practices, such as fraud or deception, by undertaking financial activities or provide financial services not supervised by SCA, without having obtained a license or an approval to undertake that activity or provide that service.
According to Article (2), SCA has the right to take any of the following actions if it discovers that the practices referred to in Article (1) were committed:
Post a warning to the public on its website or via any other mean it deems appropriate.
Refer the violator to the competent authority or the prosecutor, as the case may be.
Under Article (3), SCA has the right to include the name, position, and address of the natural or legal person, along with the nature of the unsound or illegal practice that person was engaged in, in addition to any other information SCA deems appropriate.
According to Article (4), the Chief Executive Officer has the power to approve the publication of warnings after consulting with the Chairman of the board if the warning involves a person, who has a license or an approval from another local authority inside the country.
Under Article (5), it is permissible for SCA to remove the warning if the reasons behind its publication ceased to exist.
Under Article (6), SCA may, at its own discretion, refrain from publishing warnings, according to the public interest.