Abu Dhabi, UAE – The UAE government has approved a new law aimed at enhancing the efficiency of oversight of financial markets and consolidating the principles of transparency and discipline.
This is achieved by updating the administrative penalties system
and granting the Securities and Commodities Authority broader powers to deal with violations.
The law stipulated raising the ceiling of administrative fines in proportion
to the severity of the violations and the volume of transactions associated with them.
This ensures effective deterrence and prevents any practices
that compromise market integrity or harm investors’ rights.
Imposing an appropriate tax
The legislation also granted the authority the power to impose a proportional
fine of up to ten times the profits made by the violator as a result of the violation.
Or what it avoided in terms of losses, in a move that reflects the state’s
strictness in confronting any regulatory violations.
The law also includes provisions for reconciliation with violators
before final judicial decisions are issued, according to specific regulations.
This will contribute to settling violations more quickly and flexibly.
The new legislation also permits the publication of administrative penalties issued
against violators on the official website of the Securities and Commodities Authority.
Culture of compliance with laws
This reinforces the principle of disclosure and transparency,
and strengthens the culture of compliance with laws and regulations.
It sends clear messages about the seriousness of regulatory bodies in protecting the market.
The UAE government confirmed that this step comes within the framework of
its continued commitment to developing the legislative and regulatory environment for financial markets.
And aligning them with global best practices, thereby enhancing
the confidence of local and international investors.
This supports the UAE’s position as a regional and global financial and investment hub.
The law is expected to contribute to strengthening financial stability,
improving governance levels, and ensuring fair competition.
This serves the goals of sustainable economic development pursued by the state.
