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DUBAI SECURITIES AND COMMODITIES (SCA) - CATEGORY 5 LICENCE
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Arrangement & Advice

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​​Category 5 Licence is issued by the Securities and Commodities Authority (SCA) of the UAE which is the regulatory body responsible for supervising and regulating the securities and commodities markets in the UAE. Established in 2000, the SCA has the main aim of promoting investor confidence and protecting the interests of investors, issuers, and other stakeholders in the securities and commodities markets.

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SCA operates under the supervision of the UAE Ministry of Economy and has the authority to issue regulations, licensing and supervising the activities of all entities operating in the UAE’s securities and commodities markets. This includes companies, brokers, dealers, investment advisers, and other market participants.

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Categories of SCA licensed financial activities

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SCA has divided all licensed financial activities into five categories:

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Category 5 Licence: Arrangement and advice
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The fifth category is for “Arrangement and Advice” which includes the following activities:

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  • Financial Consulting - Financial Analyst

  • Financial Adviser (Issuance Manager) - Financial Analyst & Head of Risk Management

  • Listing adviser - Financial Analyst

  • Introducing - None

  • Promotion - Promotion Manager

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Capital Requirement and Government fees

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As per the recent change in the laws, the paid-up capital must not be less than USD 137,000. The government fees for activities that can be carried out under the Category 5 Licence are as follows:

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Required documents

 

The licensing service is divided into two phases:

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Phase 1: Initial approval

 

To submit it to the Department of Economic Development or the Ministry of Economy

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Requirements for Initial approval:
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  • Financial eligibility

  • Experience and competence, honesty, integrity and compliance

  • Availability of feasibility study, action plan and adequate resources

  • The suitability of partners, board members and senior management - excluding banks and branches of foreign banks.

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Phase 2: Licensing phase:
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Requirements for Initial approval:

  • Investment Capital and Financial Guarantee

  • To meet the requirements of capital market institutions (if any)

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To be provided during application for licensing
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  • Governance, management, worker, behaviour & Rewards Regulations

  • Internal systems and controls

  • Technical systems

  • Risk management regulation

  • Compliance regulation and Internal audit regulation

  • Business continuity regulation and disaster recovery

  • Information confidentiality regulation

  • Regulation to deal with fraud, forgery and deception

  • Whistleblowing regulation and violation of legislation

  • Complaints, Outsourcing and Record regulations

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