Actions Taken by SCA to Ensure Business Continuity in the Securities Sector
Out of the belief of the Securities and Commodities Authority (SCA) in the importance of business continuity and institutional risk and crisis management and to implement the approved business continuity methodology and general framework, which reflects its commitment to the risk culture in financial market institutions, the following actions have been taken recently:
- H.E. Eng. Sultan bin Saeed Al Mansoori, Minister of Economy and Chairman of SCA, issued a decision amending the limit down on share prices.
- SCA develops mechanism to facilitate share buybacks for listed companies
- H.E. Eng. Sultan Al Mansoori met with SCA’s executive management to explore the latest financial market developments and to discuss proposals and initiatives that aim to ensure recovery from the impacts of the current global crisis.
- SCA met with the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) to explore financial market conditions, contain the impacts of the falling indicators, and take immediate actions to deal with the declining financial markets.
- Giving companies an extended 45-day grace period to disclose the 2019 annual audited financial statements.
- Postponing the disclosure of this year’s first-quarter financial statements until the scheduled disclosure of the second-quarter statements on June 30.
- A circular was sent to public joint-stock companies, requiring them to approve the electronic participation of shareholders in their annual general meetings without having to be physically present there.
- A circular was sent to all licensed companies, requiring them to come up with a calculated plan and a written policy to ensure business continuity and to put the emergency recovery plan into action, in addition to urging them to take all precautionary and preventive measures to ensure the safety of all people working in the securities industry.
- H.E. Sultan Al Mansoori made a statement, commenting on the Abu Dhabi Executive Council’s stimulus package.
- H.E. Dr. Obaid Al Zaabi, SCA’s CEO, made a statement, commenting on the Abu Dhabi Executive Council’s economic stimulus package and the establishment of a market maker fund under Ghadan 21 program.
- Granting employees at licensed companies who are eligible to sit for the professional licensing examinations administered by SCA’s PTEC a three-month grace period, beginning on the date registration is made open.
- Sending a circular to licensed companies, communicating the importance of retaining Emirati staff in the workplace as human capital and wealth in light of the current conditions.
- Meeting with the UAE Central Bank governor to coordinate matters related to the imposition of extra controls on trading and margin trading.