The Emirates Securities and Commodities Authority (SCA) has held in Abu Dhabi and Dubai a forum on "The Legal Aspects of Protecting Investors on the Securities Markets". Dr. Ashraf Abdul Munem, Legal Advisor at the SCA, made a presentation on the subject matter which entails three different dimensions, including a preview of securities regulators and markets, the various forms of securities markets supervision and regulating the activities of securities brokers.
Touching on the first dimension – a preview of securities regulators and markets, Dr. Ashraf outlined the various definitions and concepts of securities markets, as well as the types and rankings of securities markets. He explained the functions of each market type and its regulation system, before rounding that point with the legal aspects of securities markets in the UAE.
Dr. Ashraf also delved into the issue of securities markets regulators – citing the Emirates Securities and Commodities Authority as an example – by outlining its objectives, legislative and regulatory roles and its organizational structure.
On the second dimension, the lecturer explained the supervisory operation of listing of securities on the markets, the rules and requirements governing the process, the obligations of the issuer of the securities (listed company) soon after the listing process and how such company's listing in suspended or cancelled.
Dr. Ashraf also touched on the legal aspect of disclosure and transparency on the securities market. He underscored its significance and explained the information that must be disclosed to improve market efficiency, to ensure equity among investors and to inform them adequately about the status of the company issuing the securities.
The lecturer gave some examples about the standards and the requirements of disclosure and transparency as outlined by some regulations and legislations approved by related international organizations like the International Organization of Securities Commissions (IOSCO) and the World Bank.
Touching on the third dimension - regulating the activities of securities brokers in the UAE – Dr. Ashraf outlined the rules and regulations governing the process of licensing securities brokers and the latter's rights and obligations. He started by explaining the mechanism of setting up brokerage companies and licensing of brokers according to UAE legislations. He also touched on the issue of brokers' commission, the right of a broker in trading in its own name and account without jeopardizing the interest of its client or compromising his responsibilities towards the client.
Regarding the obligations of securities brokers, Dr. Ashraf outlined regulations and decisions which demand from those companies to respect the ethics of the profession and to avoid anything that may harm the reputation of the market, its members and other players on the market. He also explained the requirements related to the internal organization of the brokerage companies aimed at ensuring sound transactions on the markets and keeping the market under control.
Touching on the first dimension – a preview of securities regulators and markets, Dr. Ashraf outlined the various definitions and concepts of securities markets, as well as the types and rankings of securities markets. He explained the functions of each market type and its regulation system, before rounding that point with the legal aspects of securities markets in the UAE.
Dr. Ashraf also delved into the issue of securities markets regulators – citing the Emirates Securities and Commodities Authority as an example – by outlining its objectives, legislative and regulatory roles and its organizational structure.
On the second dimension, the lecturer explained the supervisory operation of listing of securities on the markets, the rules and requirements governing the process, the obligations of the issuer of the securities (listed company) soon after the listing process and how such company's listing in suspended or cancelled.
Dr. Ashraf also touched on the legal aspect of disclosure and transparency on the securities market. He underscored its significance and explained the information that must be disclosed to improve market efficiency, to ensure equity among investors and to inform them adequately about the status of the company issuing the securities.
The lecturer gave some examples about the standards and the requirements of disclosure and transparency as outlined by some regulations and legislations approved by related international organizations like the International Organization of Securities Commissions (IOSCO) and the World Bank.
Touching on the third dimension - regulating the activities of securities brokers in the UAE – Dr. Ashraf outlined the rules and regulations governing the process of licensing securities brokers and the latter's rights and obligations. He started by explaining the mechanism of setting up brokerage companies and licensing of brokers according to UAE legislations. He also touched on the issue of brokers' commission, the right of a broker in trading in its own name and account without jeopardizing the interest of its client or compromising his responsibilities towards the client.
Regarding the obligations of securities brokers, Dr. Ashraf outlined regulations and decisions which demand from those companies to respect the ethics of the profession and to avoid anything that may harm the reputation of the market, its members and other players on the market. He also explained the requirements related to the internal organization of the brokerage companies aimed at ensuring sound transactions on the markets and keeping the market under control.