The UAE has issued two federal decree laws aimed at strengthening the regulation of its capital markets, as part of the country's efforts to modernise its financial legislation and regulatory framework.
The decree laws, issued on January 1, enhance the independence of the country's Capital Market Authority (CMA) and the regulation of capital markets.
They "reinforce the independence of the Capital Market Authority and its role in safeguarding the soundness and stability of the capital markets sector and ensuring fair competition", the UAE Government Media Office said in a statement on Thursday.
The laws are designed to enhance market stability, improve efficiency and competitiveness, and align the UAE’s regulatory framework more closely with international standards, it added.
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The regulation sets out the core mandates of the CMA, including regulating and supervising licensed financial activities and issuers, issuing rules to ensure fair and effective market practices, supporting principles of governance and monitoring system-related risks across the capital markets sector.
The move also seeks to enhance the country's standing in international assessments by aligning with the requirements of global bodies such as the International Organisation of Securities Commissions, the World Bank, the International Monetary Fund and the Financial Action Task Force, the statement said.
The laws also support a framework for enhanced international co-operation and mutual recognition procedures, as well as enabling the recognition of financial products across jurisdictions.
In the area of consumer protection and financial inclusion, licensed firms will be required to ensure access to appropriate financial services for all segments of society, in line with digital transformation and financial technology's growing role, under the new laws.
The framework also provides for national financial awareness programmes, developed in co-operation with the financial sector and civil society, building on existing measures to align credit facilities with customers’ income levels and to protect clients from irresponsible practices, the statement said.
The law regulating capital markets, meanwhile, introduces early intervention measures to address signs of financial deterioration at licensed entities. These include activating recovery plans, imposing additional capital and liquidity requirements, adjusting strategies, restructuring management and operations and, where necessary, pursuing mergers, acquisitions or liquidation to protect financial stability and clients.
In its capacity as the
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