SCA organizes awareness programme in Abu Dhabi, Dubai and Sharjah

As part of its core role of raising awareness among investors and improving the investment culture of dealers in capital markets, the Securities and Commodities Authority (SCA) recently organized a series of seminars and lectures on a number of important topics and issues. The seminars, held in various emirates and delivered by financial and economic experts, were attended by a large number of professionals, academics, media representatives and guests.

Balance between saving and investment

The first seminar, aimed at investors and entitled "How to balance between saving and investment in securities", was delivered by financial expert Salah Salem Al Halayan and included a detailed explanation on several topics, including challenges, opportunities, sources of income, current consumption behavior, and weaknesses in planning and financial policies for individuals and families. Al Halayan explained the impact of debts and accumulated interest on the family income, especially in the case of credit cards. He also presented the impact of inflation on the salary's power of purchase. The lecture was delivered in Abu Dhabi and Dubai.

The seminar recommended benefiting from a high salary and seeing investments as an additional source of income for the future and an effective method to face the negative implications of inflation, and highlighted the importance of investment awareness of the various financial derivatives in the local or global market. It also stated that investors must specify their investment objectives to be able to select the instrument that best serve these goals.

Legal aspects of brokerage activities

The second seminar, designated for brokerage firms, tackled the "Legal Aspects of Brokerage Activity in Securities". The attendees listened to a comprehensive presentation delivered by Dr Ashraf Ahmad Abdul Monaim, the SCA's Legal Advisor, which covered three topics, the first of which focused on licensing, rights, and funding problems.

The lecturer clarified that licensing for brokers operating in capital markets is obligatory, and presented the requirements of brokers as per the SCA's laws and regulations. He also gave a detailed explanation on licensing procedures, and spoke about the rights of brokers. He went on to clarify the problems arising from financing agreements with clients to enable them to trade in the capital market, whether through the broker or through a bank operating in the country. He pointed to the authority's initiative to regulate these operations through the resolution issued by the board of directors on margin trading.

The seminar's second topic addressed the broker's commitment to professional ethics, to refrain from any action that may defame the market, its members or dealers, to comply with internal organizational measures that ensure fair dealing, to separate the broker's accounts from the customers', to prohibit the disposition of the funds deposited in the customers' accounts or using these funds as guarantee to obtain any credit facility or bank loans in the broker's name and for the broker's interest, to protect the interests of customers, to avoid any conflict of interest between brokers and customers, and to give priority to customers.

The third topic addressed penalties stipulated for any breach committed by brokers, whether criminal or administrative, with a special focus on the types of fines and administrative penalties that may be imposed on brokers.

At the end of the lecture, attendees were briefed on the legal methods and tools used to prove the transactions made through brokers on customers' owned securities. The lecture was held in Abu Dhabi and Dubai.

The role of authority in capital markets

The third lecture, delivered by Dr Hassan Yassin, the SCA's Senior Advisor, addressed "Investment in Financial Markets...Concepts and Advice", and was designated for students of the Higher Colleges of Technology in Abu Dhabi while the fourth lecture was designed for students of the University of Sharjah. Delivered by Dr Obaid Al Zaabi, Research Advisor and Director of the Research and Development Department at the SCA, it saw a large turnout of attendees, including the university's students and professors, who listened to a detailed explanation and took part in rich discussions.

Both lectures focused on the development of capital markets and regulatory authorities, and the role of regulatory authorities in supervising and governing the trading on securities such as shares, bonds and investment funds. It also looked at the laws, regulations and legislations needed to govern these activities, pointing to the advanced levels achieved by the SCA in this regard. The lectures covered the concepts of financial markets indices and their types, as well as a number of other topics.

The role of depository, transfer and clearance centres was clarified, whether that be inside the trading session, or outside such as in the distribution of inheritance. The role of these centres in the reservation and mortgage of shares was presented, too.

A number of concepts related to securities and commodities, and the methods of trading in the capital markets, including the free zones financial markets, were presented. The listing of Public Joint Stock Companies in capital markets was discussed, with a focus on the importance of compliance with disclosure and corporate governance rules.

The lectures further discussed the role of brokerage firms, the required terms and conditions to license these companies, the role of the authority's training centre in preparing and developing financial brokers and analysts, as well as the requirements of other personnel working in these firms.

The awareness programme forms part of the SCA's keenness to raise the cultural and professional level of the UAE financial sector's staff, to enhance investment awareness, and to present modern standards in accordance with the world's best practices. These efforts aim to maintain and further develop the leading position of the country's financial sector on both regional and international levels.