Abu dhabi: The UAE Government has issued new federal decree laws aimed at restructuring the Capital Market Authority and regulating capital markets, signifying a strategic move to modernize the financial sector’s legislative framework. This initiative aims to bolster stability, efficiency, and competitiveness within the sector.
According to Emirates News Agency, these decree laws are designed to align national regulations with international standards, reinforcing the independence of the Capital Market Authority. The laws are intended to safeguard the soundness and stability of the capital markets, ensuring fair competition. They delineate the core mandates of the Authority, including the regulation of licensed financial activities, supervision, and the issuance of regulations to promote fair financial practices.
The decrees also aim to enhance compliance with global best practices and international financial standards, addressing the requirements set by organizations such as the International Organization of Securities Commissions and the Financial Action Task Force. This alignment aids in improving international assessments, fostering international cooperation, and enabling mutual recognition of financial products across borders.
In terms of consumer protection, the laws establish an integrated framework ensuring financial inclusivity, aligned with digital transformation and financial technology advancements. They support sustainability and leadership in financial services while instituting national awareness programs to promote responsible financial practices.
The decree concerning the Regulation of Capital Markets introduces measures for early intervention in financial deterioration, safeguarding financial stability and client interests. These measures include activating recovery plans, imposing additional capital requirements, and managing financial crises through the Capital Markets Authority, which acts as the resolution authority.
Furthermore, the decrees outline increased administrative fines for violations, allowing the Authority to impose penalties up to ten times the profit or loss avoided by the violator. They also permit reconciliation prior to final judicial decisions and the publication of sanctions, enhancing transparency and market discipline.