Legislation Details
- Full Title: Distribution of Competencies and Powers between the Securities and Commodities Authority (SCA), and the Securities and Commodities Licensed in the State
- Law Type: Federal Decree-Law
- Law Number: No. (22) of 2020
- Issued Date: 27 Sep 2020
- Effective Date: 01 Oct 2020
- Official Gazette: No. 687
- Sector: Economy and Business
- Status: Active
- Number of Articles: 17
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Decree-Law regulates the distribution of competencies and powers between the Securities and Commodities Authority (SCA) and the securities and commodities entities licensed in the UAE. It establishes that the licensed entities shall solely assume the operational and executive powers previously held by the SCA, while the SCA retains the authority to regulate, monitor, and supervise the securities and commodities sectors. The law aims to streamline the governance and operations of the UAE's financial markets. (Federal Decree-Law No. (22) of 2020, Art. 1-2) This law is significant for businesses and individuals operating in the UAE's securities and commodities markets, as it clarifies the roles and responsibilities of the SCA and the licensed entities. It empowers the licensed entities to directly handle operational and executive matters, while the SCA focuses on its regulatory and supervisory functions. This division of competencies is expected to enhance the efficiency and responsiveness of the UAE's financial markets. (Federal Decree-Law No. (22) of 2020, Art. 1-2)
What is the scope and purpose of this law?
The scope of this Federal Decree-Law is to distribute the competencies and powers between the Securities and Commodities Authority (SCA) and the securities and commodities entities licensed in the UAE. The purpose is to establish that the licensed entities shall solely assume the operational and executive powers previously held by the SCA, while the SCA retains the authority to regulate, monitor, and supervise the securities and commodities sectors. (Federal Decree-Law No. (22) of 2020, Art. 1-2)
What are the key definitions under this law?
The law does not provide any specific definitions. It refers to the "Securities and Commodities Authority (SCA)" and the "securities and commodities licensed in the State", but does not define these terms further. (Federal Decree-Law No. (22) of 2020)
What are the main obligations and requirements?
The main obligations under this law are: 1. The securities and commodities licensed entities in the UAE shall solely assume all the operational and executive powers and competencies previously established for the SCA. (Federal Decree-Law No. (22) of 2020, Art. 1) 2. The SCA shall have the authority to regulate, monitor, and supervise securities and commodities in the UAE. (Federal Decree-Law No. (22) of 2020, Art. 2) 3. The boards of directors and managers of the SCA shall undertake the operational and executive competencies previously established for the SCA's board of directors and CEO. (Federal Decree-Law No. (22) of 2020, Art. 3) 4. The SCA shall coordinate with the markets to transfer all regulations and data related to the market implementation of the competencies entrusted to it under this law. (Federal Decree-Law No. (22) of 2020, Art. 4)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for the enforcement and implementation of this law are: 1. The Cabinet or whomever it authorizes may issue decisions to implement the provisions of this law, including specifying the operational and executive powers and competencies of the SCA. (Federal Decree-Law No. (22) of 2020, Art. 5) 2. The Cabinet or whomever it authorizes may form one or more committees, upon the request of the concerned market, to carry out the operational and executive competencies stipulated in this law until the markets complete the necessary logistical arrangements. (Federal Decree-Law No. (22) of 2020, Art. 6)
What are the penalties for non-compliance?
The law does not specify any penalties for non-compliance. (Federal Decree-Law No. (22) of 2020)
How does this law interact with other UAE legislation?
This Federal Decree-Law interacts with the following other UAE legislation: 1. Federal Law No. (1) of 1972 on the Competencies of the Ministries and the Powers of the Ministers, as amended. 2. Federal Law No. (4) of 2000 on the Emirates SCA and Market, as amended. 3. Federal Law No. (2) of 2015 on Commercial Companies, as amended. The law states that any text or provision contained in any other legislation that violates or contradicts the provisions of this Decree-Law shall be repealed. (Federal Decree-Law No. (22) of 2020, Art. 7)
When did this law come into effect?
This Federal Decree-Law No. (22) of 2020 was published in the Official Gazette No. 687 and came into effect on 1 October 2020, the day following the date of its publication. (Federal Decree-Law No. (22) of 2020, Art. 8)
Source Documents
This article analyses Distribution of Competencies and Powers between the Securities and Commodities Authority (SCA), and the Securities and Commodities Licensed in the State for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.