The UAE’s Securities and Commodities Authority (SCA) released new operational regulations for stockbrokers toward the end of December, which the regulator says will boost market transparency. The new rules will affect brokers on both the Dubai and Abu Dhabi markets.
While many of the new broker rules involve training and minimum educational standards, stock brokerages also face a steep jump in capital reserve requirements from the current US$1.37m (AED 5m) to US$8.22m (AED 30m).
Brokers are also required to deposit a minimum of US$5.5m (AED 20m) with the market clearing authorities.
The amendments to the broker rules will boost investor confidence and result in brokers delivering better services in a more competitive environment, comments Abdullah Al Turaifi, CEO of the SCA.
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