Abdullah Al Turifi: We exchange expertise with developed markets on matters relevant to listing, clearing, settlement, investment tools, derivatives, and omnibus accounts
Pursuant to the directives of H.E. Sultan Al Mansoori, Minister of Economy and Board Chairman of the Securities and Commodities Authority (SCA), to draw a road map and complete the first phase of the plan to promote the UAE markets to developed, the SCA delegation completed a mission aimed at reviewing the experience of securities markets in Singapore, Malaysia, and Hong Kong.
During meetings with officials of securities markets in these countries, the delegation, headed by H.E. Abdullah Al Turifi, discussed approaches adopted and work plans executed by regulators to successfully promote their respective markets to developed.
Al Turifi said that the SCA delegation held meetings and seminars with officials and experts from the Hong Kong-based Securities and Futures Commission (SFC), the Monetary Authority of Singapore (MAS), and the Malaysian Securities Commission (SC). Discussions were also held with representatives of the departments of supervision, listing and clearing, as well as with the committees of market supervision and legislation. Al Turifi added that the meetings also addressed assessing the legislative cycle in formulating and amending regulations and how compressive they are in regulating securities services and products, as well as trading and supervision mechanisms.
Al Turifi explained that that the seminars and forums held aimed at reviewing the Singapore, Malaysian, and Hong Kong experiences in specific matters, such as the primary and second markets, mutual fund regulations (such as fund establishment and promotion, specialized funds, fund listing and disclosure requirements) and the phases of the legislative cycle of the regulations in place.
He revealed that the meetings reviewed the regulatory process in these countries and the legislative cycle in drawing up regulations and legislations.
He indicated that the SCA delegation, for its part, reviewed the SCA vision on market products and investment tools and put it up for discussion and analysis, especially matters relevant to derivatives, the other new tools, post-payment mechanisms (such as delivery verses payment (DVP)), distribution services, licensed shareholders, supervision, inspection, and penalties.
In addition, the SCA delegation, consisting of Dr. Obaid Al Zaabi, Deputy CEO for Issuance and Legal Affairs; Dr. Mounther Barakat, Senior Studies and Research Advisor; and Mohammed Al Noukhatha, International Relations and Organizations Section Head, examined a number of topics, including:
Primary Market. The following has been reviewed in relation to the primary market: primary market and regulator role, licenses required by those offering corporate consultations during the offering process (initial public offering (IPO) regulations, such as book building), underwriters, promoters, and regulating investment managers and consultants, as well as identifying share offering value, prospectus preparation, underwriting, and listing preparation.
Second Market. The following has been identified as to the second market: second market and SCA role in making use of listing private companies and encouraging medium and small companies to be listed.
As to mutual funds, detailed discussions were held about the requirements to qualify the UAE to act as a "portal to license and promote local and international funds" at home and aboard and use them in directing investment in the UAE markets.
Market Mechanisms. The following has been discussed in relation to market mechanisms: trading via omnibus accounts, approaches to risk management, and clearing and settlement mechanisms. Experiences of these countries in segregating clearing and settlement by establishing independent deposit and clearing companies have been reviewed.
Discussions held by SCA with its Malaysian counterpart reviewed the Malaysian securities markets experience and the mutual exchange of expertise in relation to mutual fund management in the UAE and Malaysia