The Securities and Commodities Authority, SCA, approved on Friday, July 11, new regulations for brokers to open up the industry to broader international competition.
The regulation, which is still pending government approval, will namely lower the capital needed for brokerage firms to operate. Prior to the financial crisis, regulators had upped the required limit from AED20 million to AED30m, in an attempt to consolidate the sector.
If given the go-ahead, the new regulation will differentiate trading brokerages, which will require only AED3m in paid-up capital, from trading and clearance brokerages, which will need AED10m in funds in order to operate.
This will, undoubtedly, …Read more