As part of the UAE strategy to foster the culture of innovation, and consistent with the role the Securities and Commodities Authority (SCA) plays in regulating the UAE securities industry and with its strategic objective of contributing to the creation of a stable environment that attracts investment to the capital market, SCA announces its initiative to support innovation-based fintech in securities markets and the companies operating in these markets and wishing to introduce and offer innovative and unprecedented technological services in this field.
The Goal of the Initiative
- To open communication channels with innovators in the financial industry, especially in fintech, and understand their needs;
- To create an appropriate regulatory environment for the development of services and products through modern innovations; thus increasing capital market efficiency;
- To provide regulatory support and advice to fintech companies while protecting investors; and
- To keep pace with the latest developments in fintech and act accordingly.
The Idea behind the Initiative
To create an electronic platform/portal that serves as a regulatory sandbox and brings together fintech companies, companies that offer innovative financial services, financial institutions, and telecommunications and internet companies to test and launch modern technological initiatives in the securities sector. This is done in an empirical, safe, flexible, and cost-effective environment and within a regulated context that ensures investor protection before launching the initiative and making it subject to the full regulatory requirements.
SCA is currently preparing to receive comments and views from various market actors at the local, regional, and international levels, including technological companies, telecommunications companies, financial institutions, academics, students, investors, and all concerned parties on formulating this initiative and working together to put it into effect, consistent with the best global practices. When sending your suggestions, please bear the following in mind:
- The nature, types, and characteristics of the innovations and technologies that are expected to impact the domestic financial industry and its requirements, in addition to the financial techniques that meet the regulatory requirements more effectively and efficiently.
- The support SCA is expected to provide to companies through this platform.
- The areas that need to be reconsidered or developed within a regulatory context to better adapt to the idea of supporting innovation.
- Any other initiatives or ideas that may be appropriate in this context.
SCA will take the views and comments it receives into consideration to formulate the best way to put the initiative into action in line with its interests. It will later announce the details of how to put the initiative into action and how can various actors make use of it.