The UAE’s Securities and Commodities Authority (SCA) has launched the region’s first-ever “Finfluencer” licence. This regulatory milestone aims to supervise and formalise digital financial content. This move aligns with the SCA’s broader strategy to regulate the rapidly evolving digital finance sector.
The new initiative is designed to provide a governance framework for individuals offering investment analysis, financial promotions, and recommendations on digital platforms. By creating this framework, the SCA seeks to protect investors and ensure the quality of financial content available online.
Raising Market Integrity and Transparency Globally
Waleed Saeed Al Awadhi, CEO of the SCA, stated, “The launch of the Finfluencer license is more than a regulatory measure; it is a strategic step towards rethinking the role of regulators in the digital economy.” Al Awadhi emphasized that this initiative will raise market integrity standards globally and foster transparency.
He also noted that the SCA aims to position itself as an enabler of transformation. “Through forward-thinking regulations, we seek to evolve with the dynamic financial landscape,” he added.
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Reducing Bureaucracy and Promoting Financial Innovation
The Finfluencer licence is part of a broader package of measures designed to modernise the UAE’s regulatory framework. This package ensures the country remains aligned with the fast-moving digital finance landscape. To further promote this initiative, the SCA has waived registration, renewal, and legal consultation fees for a period of three years.
This effort is part of the SCA’s strategy to reduce government bureaucracy. By eliminating these fees, the authority aims to foster innovation and facilitate easier access for those interested in the financial sector.
Regulating Financial Recommendations via Digital and Traditional Media
The licence will be available to individuals who offer financial advice or recommendations related to regulated products or services. This includes content creators using digital or traditional media, such as social media, blogs, and public appearances. These individuals will need to register with the SCA and comply with regulatory standards.
A “Finfluencer” is defined as anyone providing recommendations about financial products, virtual assets, or services within the UAE. These recommendations may be given through various platforms, including social media, seminars, or public forums.
Broad Scope of Content Creators Included in the Licence
The initiative extends to those who share opinions, analyses, or reports on investments, financial products, or market performance. It applies to content creators who provide financial insights to the public through written or audio media.
The launch of the Finfluencer licence is in line with the SCA’s long-term vision of positioning the UAE as a leading global financial hub. By implementing agile and modern regulatory measures, the SCA aims to enhance investor confidence and elevate financial literacy across the country.
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SCA’s Commitment to Market Integrity and Investor Confidence
The SCA’s strategic focus is to ensure that the UAE’s financial market remains transparent, trustworthy, and in line with global best practices. The regulatory body’s forward-looking approach aims to protect the interests of investors while supporting the growth of the digital finance sector.
Through the Finfluencer licence, the SCA is demonstrating its commitment to maintaining market integrity and promoting a robust regulatory framework. This will contribute significantly to the UAE’s growing reputation as a financial powerhouse in the Middle East and beyond.
Key Highlights:
- First-Ever Finfluencer Licence: UAE SCA introduces a formal system to regulate digital financial content creators.
- Enhanced Investor Protection: The new licence aims to safeguard investors and provide clear rules for financial influencers.
- Fee Waivers: Registration and renewal fees are waived for three years to encourage participation.
- Global Vision: The SCA aims to establish the UAE as a top financial hub by embracing modern regulatory practices.
- Transparency and Integrity: This move is designed to boost transparency and uphold market integrity in the UAE’s financial sector.
The launch marks a pivotal moment for the digital finance industry in the UAE. The SCA’s proactive approach sets a high standard for financial influencers worldwide. It will also help bridge the gap between traditional financial advisory services and the modern digital economy.
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