Introduction

The UAE Securities and Commodities Authority (‘SCA’) plays a pivotal role in regulating and supervising the financial markets to ensure their integrity, transparency, and efficiency. One of its key mandates is the certification of physical persons occupying crucial roles within licensed entities. This certification process aims to enhance professional standards, uphold compliance with applicable laws, and promote accountability within financial activities. At Hoot Innovation Law Hub (‘Hoot’), we are dedicated to providing unparalleled legal insights and guidance to entities navigating the financial markets in the UAE. With a commitment to regulatory excellence, our expertise ensures that licensed entities remain compliant with the SCA Rulebook while fostering robust operational practices. Our goal is to empower your business with the knowledge necessary to meet compliance requirements while maintaining operational efficiency.

This article explores the critical roles outlined under the SCA regulations, focusing on the qualifications, tasks, and exceptions applicable to key positions within licensed entities. It establishes a framework for licensing professionals, ensuring they possess the requisite expertise, qualifications, and ethical standards to operate in the UAE’s dynamic financial environment.

Certified Jobs

The certified jobs recognised by the SCA encompass a wide range of critical roles within financial entities, including compliance officers, category managers, trading managers, risk management officers, financial analysts, investment operations managers, and more. These positions are integral to maintaining the functionality and compliance of licensed entities, aligning their operations with the SCA’s regulatory standards.

To ensure efficiency, the Rulebook allows for the consolidation of certified roles under specific conditions. For instance, one certified employee may oversee multiple financial activities within the same category, provided this does not conflict with the requirements for roles such as broker representatives or category officers.

Certification Requirements

To qualify for certification under the SCA Rulebook, professionals must meet certain "fit and proper" criteria. This includes legal capacity, meaning candidates must demonstrate that they are legally able to hold the positions for which they seek certification. Additionally, individuals must meet specific qualifications and experience requirements that align with the responsibilities of the role they will assume. Certification is also contingent upon candidates having a sound understanding of the regulatory framework governing their field and passing any necessary examinations as required by the SCA.

Once certified, professionals are expected to maintain their certification annually, with a renewal process in place to ensure that individuals remain qualified and competent in their roles. The SCA also holds the discretion to impose specific conditions on certification or to deny certification if it deems such actions necessary for public interest or to ensure the stability of the financial market. These stringent requirements ensure that only qualified individuals occupy critical positions within the financial sector.

Exemptions from Certification

While most roles within licensed entities are subject to certification under the SCA Rulebook, there are specific exemptions that apply in certain circumstances. For instance, professionals performing overlapping duties in similar categories of financial activity may not be required to obtain additional certifications. Similarly, in smaller entities or those with specialized operations, certain positions may be exempt from certification if such an exemption does not compromise the overall regulatory objectives of the SCA. These exemptions provide a level of flexibility within the financial sector while ensuring that high standards of compliance and integrity are upheld.

Ethical and Professional Obligations

Certified professionals are expected to adhere to strict ethical guidelines, which are crucial for maintaining the integrity of financial markets. These guidelines include acting with integrity, diligence, and transparency in all professional dealings. Additionally, certified individuals must safeguard client confidentiality and avoid conflicts of interest. They are expected to maintain transparency and accountability in all financial dealings and to uphold the best practices in their respective roles.

Roles such as compliance officers and category managers carry additional responsibilities, such as implementing anti-money laundering measures and ensuring that all practices within their entities comply with both local and international regulations. These professionals play a central role in maintaining the reputation and credibility of the UAE financial market, which is of paramount importance as the country continues to position itself as a global financial hub.

Key Responsibilities of Certified Positions

Certified professionals such as compliance officers and category managers play distinct yet interconnected roles in safeguarding market integrity.

• Category Managers/Officers are tasked with managing and supervising licensed entities, ensuring adherence to operational and regulatory frameworks. To qualify individuals typically need a university degree with 5+ years of experience or a diploma with 15+ years of experience. Alternative qualifications (e.g., CMA, CFA) may suffice.  Exceptions include compliance officers at banks licensed by the UAE Central Bank, who may also serve as compliance officers for the bank. Additionally, combining the roles of compliance officer and risk management officer is permissible for certain investment fund management activities, and professional licensing exams are waived for managers of specific entities like Virtual Asset Service Providers.
• Compliance Officers oversee compliance with state laws, anti-money laundering regulations, and guidelines, serving as a cornerstone for lawful operations. To qualify individuals usually need a university degree with 5+ years of experience or diploma with 10+ years. Equivalent professional certifications, such as CMA, CFA, or Certified Treasury Professional, with five (5) years of experience are acceptable. Compliance officers for UAE Central Bank-licensed entities may also hold similar roles at the bank. Moreover, combining the roles of compliance officer and risk management officer is allowed for specific financial activities, particularly in investment fund management.
• The Risk Management Officer plays a pivotal role in identifying, assessing, and mitigating risks associated with a licensed entity's operational and financial activities. This includes the preparation and revision of risk management manuals in alignment with the company’s financial objectives. To qualify, individuals typically need a university degree and at least five years of experience in financial markets or equivalent certifications such as Certified Internal Auditor (CIA). The SCA permits outsourcing or combining this role with other positions under specific conditions.
• The Operations Manager ensures that financial procedures, accounting entries, and client settlements are managed efficiently. This role also involves coordination with compliance officers to maintain contractual accuracy. Candidates are required to hold a university degree with five or more years of relevant experience or certifications such as CMA or CPA. However, Virtual Asset Service Providers are exempt from professional licensing tests for this position.
• The Trading Manager oversees the transactions executed by broker representatives, ensuring that trading processes meet regulatory and operational standards. A university degree with five years of experience or equivalent certifications such as Certified Investment Professional is required. Notably, online trading operations do not mandate a broker representative, offering a regulatory exemption.
• Financial Analysts and Senior Financial Analysts perform and supervise detailed financial analyses to support decision-making processes within the entity. Qualifications include a university degree and relevant professional experience, or certifications such as CFA or Certified Investment Professional. Analysts working for certain fund management companies may be exempt from licensing tests.
• The Funds Manager/Portfolio Manager is responsible for managing client portfolios, investments in funds, and profit-sharing accounts. To qualify, candidates need a university degree and at least four years of experience in asset management, or certifications such as CFP, CAIA, or Master Financial Planner. Certain fund management roles also benefit from licensing test exemptions, streamlining the hiring process for specialized professionals.

The SCA’s certification framework for physical persons is an essential part of maintaining the UAE’s financial integrity. By clearly defining the roles that require certification, the qualifications needed, and the ethical obligations attached to these positions, the Rulebook helps ensure that licensed entities operate transparently and in compliance with the law. The exemptions allow for flexibility, but the core purpose remains to foster a market environment that is fair, secure, and accountable. By upholding these standards, the SCA continues to contribute to the UAE's reputation as a stable and reputable financial center in the global market.

Hoot Innovation Law Hub stands at the forefront of regulatory and compliance advisory, offering comprehensive legal services to help licensed entities thrive in the dynamic financial ecosystem. Our firm specializes in tailoring solutions for compliance with the SCA Rulebook, advising on structuring roles and responsibilities, navigating regulatory exemptions, and drafting policies aligned with operational goals. We pride ourselves on delivering client-centric solutions that strengthen regulatory frameworks while fostering growth.

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