Dr. Obaid Al Zaabi: SCA’s New Law Imposes Deterrent Penalties on Violators, SCA Pursues Motivational Methods to Prevent Violations
6/13/2018 - H.E. Dr. Obaid Al Zaabi, CEO of the Securities and Commodities Authority (SCA), said that SCA's new draft law, expected to be submitted to the Cabinet in the last quarter of 2018, intends to impose tougher penalties on violators of SCA's regulations and trading rules so as to prevent potential market manipulations...

 

 

H.E. Dr. Obaid Al Zaabi, CEO of the Securities and Commodities Authority (SCA), said that SCA's new draft law, expected to be submitted to the Cabinet in the last quarter of 2018, intends to impose tougher penalties on violators of SCA's regulations and trading rules so as to prevent potential market manipulations. He explained that SCA is also pursuing other methods to curb market violations and prevent manipulations, including self-supervision. It implemented motivational methods, such as classifying financial services companies according to the five-star rating system with higher rating given to companies providing better customer services, including raising awareness, defining violations and penalties imposed on violators, providing customers with sufficient information about sound trading practices and the regulations governing those practices, and facilitating access to the information outlined in SCA's Guide to Investor Rights. All of which is part of the National Investor Awareness Project, a project that utilizes various communication and media channels to educate investors and raise awareness among market participants and the financial services industry professionals.

Dr. Al Zaabi explained that according to SCA's motivational approach, a company's rating is raised based on its compliance with the specified regulations, which is reflected on the performance of market participants.  He indicated that this has indeed lowered violation rates in capital markets.

 

 

Leave us a comment