New SCA rules for custodians

The Securities and Commodities Authority, headed by Minister of Economy Sultan bin Saeed Al Mansouri, has approved a decision to regulate activities of custodians in the field of securities.

The decision has allowed brokerage firms to trade to their own accounts. The SCA will establish a training centre at the authority's headquarters to train brokers, financial analysts and execute investors awareness programmes. The decision outlines the requirements to receive a license that would allow the practising of custodian, procedures to apply for the license and legal action in case of any violations of the rules, where January 3, 2010, will be the last date for firms to settle their issues according to this draft.

The paid capital should not be less than Dh50 million. Applicants need to submit a bank guarantee of Dh20m.