Chapter 3 - Authorised Persons Flashcards
How much paid up capital does a Broker require?
Not be less than AED 30 million
What is the licvense period for a Broker?
One year, expiring in December each year
What is the definition of soliciting clients?
Soliciting clients is defined as seeking to meet persons in public places, or at their places of work or residence,
using the telephone or any other means of communication proposing the purchase or sale of securities
or commodities, or the rendering of associated services
How soon must a Broker notify SCA after experiencing an impediment to operation?
One week
What is the required UAE ownership of a Brokerage?
51%
How much must the bank guarantee be for a Brokerage license?
Not less than AED 20 million
What is the time period for reviewing a license?
60 Days. If no answer after 60 days, the license is considered rejected (appeal may be filed within 30 days however)
What are the requirements for a General Manager?
University Degree + 5 years experience
What are the requirements for a Operations Manager?
University Degree + 4 years experience (2 years with Postgrad, or 1 year if UAE national with Postgrad)
What are the requirements for a Trading Manager?
University Degree + 4 years experience (2 years with Postgrad, or 1 year if UAE national with Postgrad)
What are the requirements for a Broker’s Representative?
University Degree + 3 years experience (2 years with Postgrad, or 0 years if UAE national)
What are the requirements for a Internal Auditor?
Professional Accountancy certificate and 3 years in Securities or 5 years in accountancy generally. UAE nationals can do 3 years in any field.
How much is Brokerage Commssion?
- 00275% =
- 0015 to the broker;
- 0005 to the market;
- 00025 to the SCA;
- 0005 to the clearing.
Cannot be less than AED 65
What must occur before payment of value of a trade?
Execution of the sale transaction
What must a broker do before it executes any transaction?
Confirm the seller’s ownership of the shares
