As part of its role to regulate and improve the UAE financial markets, the Securities and Commodities Authority (SCA)—following its usual approach of seeking feedback from its partners in the financial industry before finalizing new regulations—published on its website, www.sca.gov.ae, a draft regulation governing the activities of crowdfunding platform operators.

SCA invited all relevant parties in the UAE financial markets, including investors, brokers, financial analysts, scholars, media figures, and stakeholders to review the draft text and provide their feedback and input no later than May 15, 2021. Their feedback and insights will be taken into consideration when arriving at the final wording of the regulation.

The draft includes 13 articles that address all technical aspects associated with the regulation of crowdfunding platform operators. These articles cover definitions; scope of application; operator licensing requirements; operator obligations towards SCA and investors; financing applicant obligations; and the rights of the investor, the operator, and the financing applicant. The draft also includes other articles on supervision, inspections, and penalties.

SCA welcomes feedback and comments on its draft regulation by email at legal_affairs@sca.ae.