The Securities and Commodities Authority (SCA) has made a 21-article draught rule on Special Purpose Acquisition Companies (SPACs) accessible on its website for public comment and input from the financial industry and other stakeholders.
The Central Bank of the United Arab Emirates (CBUAE), in collaboration with the Securities and Commodities Authority (SCA), the Dubai Financial Services Authority (DFSA) of the Dubai International Financial Centre, and the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market, collectively referred to as the “Supervisory Authorities,” has issued the Guidelines for Financial Institutions Adopting Enabling Technologies. The Guidelines are not to be construed as Supervisory Authorities’ Regulations or Standards.
The growing adoption of technology-enabled business models creates both opportunities and obstacles for those engaged in Innovative Activities.
The Guidelines are intended to provide a set of principles and associated recommendations for the use of Enabling Technologies in financial services. The guiding principles are sufficiently broad to accommodate the diverse business structures, operating models, financial services supplied by existing financial services companies and new entrants to the sector. The fundamental principles are supplemented by more specific guidelines for Institutions to consider while implementing Enabling Technologies.
Regulations Draft: Guidelines for Financial Institutions adopting Enabling Technologies
The SCA said that the draft posted on its website is preliminary only, explaining that some provisions may be amended at the time of the release of the final version. It also remarked that the regulations would be introduced once the necessary amendments are incorporated in the Commercial Companies Law.
How can j. awan & partners help?
Our in-house professionals can help guide you in understanding how these guidelines may apply to your business as well as assist in new regulatory license applications in the DIFC, ADGM, SCA and CBUAE; license variations; and the drafting of Compliance, AML and Risk Frameworks relating to virtual assets.
