UAE’s SCA amends rules to cover financial planning

UAE’s SCA amends rules to cover financial planningThe Securities and Commodities Authority (SCA) of the United Arab Emirates has made some changes to extend its scope to cover full financial planning services.

The SCA has made amendments to its regulations to enable licenced advisers in the country to offer clients a full financial planning service. The changes have created a clear difference between the agency's scope and Insurance Authority. The amendment to the 'Financial Consultation and Financial Analysis' licence comes after ion with the industry players in the previous year.

Following the changes, the new definition of financial planning is "conducting comprehensive assessment of the current and future financial position of a person through the use of variables known in the present time in order to forecast the future cash flows to help the customer develop a detailed strategy or a financial plan associated with investment in securities, commodities or commodities contracts to achieve the customer's financial goals".

Financial advisers in the UAE have said that the SCA has made it clear by defining the activities of financial planning. They also said that the amendment also made it clear that SCA is the regulator of wealth management and financial planning in the UAE. In an official press release in Arabic, the authority said the amendment is aimed at providing a larger scope and ability to the financial consultation and financial analysis firms that have obtained licences.

The amendments also allow companies to obtain a licence to practice business of financial consultation and financial analysis besides other activities. Another amendment will compel SCA licenced financial advisers to develop and activate "standards of professional conduct of employees in accordance with international practice". The amendment is a part of a series of changes that also included a change to code of conduct for employees made earlier this year.