Within the framework of the role of the Securities and Commodities Authority (SCA) in regulating and developing the financial market in the State, and in continuation of its approach to explore the opinion of its partners in the financial industry before issuing new systems, the SCA published on its website (www.sca.gov.ae) a preliminary draft of asset-backed securities «securitization» system, to explore the opinions of interested parties, experts and stakeholders, and receive their observations to be taken into account when preparing the final draft of the system.
The securitization system is the first of its kind in the local financial markets in the State. Securitization is a process whereby individual or combined assets are sold and transferred to a Special Purpose Company (SPV) to issue asset-backed securities.
The SCA called on all parties concerned with the capital market in the State, including dealers of all categories, investors, brokers, financial analysts, researchers, media professionals, interested parties, and others, to view the draft decision and express their opinions thereon no later than January 20 of this year, through the e-mail: Securitization@sca.ae.
The draft included 24 articles, which included the scope of application, criteria and requirements for assets subject to securitization transaction, criteria for real sale, parties to the securitization process, definition of SPV, its incorporation, articles of association, management, general provisions and dissolution, exceptions, the investment trustee and his assistant, disclosure requirements, application submission and provisions regulating sukuk, debt securities, proceeds of subscription, listing, trading and other articles and provisions.
To view a copy of the decision, please visit the following link: Regulations Drafts | Regulations | Securities and Commodities Authority (sca.gov.ae)