SCA LICENSING REQUIREMENTS
SCA Licensing requirements
SCA regulations 157/R of 2005
The Broker Members intending to carry out trades on behalf of their Clients have to obtain the regulatory license granted by the SCA. Such Broker Members are required to apply for a regulatory license from the Securities and Commodities Authority (SCA) and fulfill additional criteria as stipulated under SCA regulations.
Guidance Note: DGCX Compliance will assist the Broker Members in the process of applying for the SCA regulatory license and will submit to SCA all relevant documents on behalf of its Broker Members.
A duly filed application form along with the requisite documents are submitted to SCA in accordance with the regulations stipulated under SCA regulations 157/R of 2005.
Checklists outlining the documents and conditions to adhere to by the International Broker Members can be found under this section below:
International Broker Members
Checklists outlining the documents and conditions to adhere to by the Local Broker Members can be found under this section below:
SCA regulations Administrative Decision No. (34/R.T) of 2016
On 01 June 2016, SCA issued guidelines in relation to SCA licensed entities applying Fit & Proper, Outsourcing and Chinese wall arrangements. The guidelines are issued as “Administrative Decision No. (34/R.T) of 2016 (the “Regulations”)” concerning controls of financial activities and services.
These Regulations provide greater clarity on minimum staff requirements for clearing and non-clearing Members, minimum qualifications/experience of the key employees, financial obligations, and regulatory compliance requirement of Member firms that are outlined in SCA regulations 157/R of 2005.
Guidance Note: DGCX Compliance will assist the Broker Members, at the time of applying for the SCA regulatory license, to fully understand the requirements stipulated under the administrative decision regulation. Further, the existing Broker Members will be provided guidance to read and understand the administrative decision in conjunction with SCA regulation 157/R of 2005.
As the decision 34/R.T of 2016 has to be read in conjunction with SCA’s regulation 157 R of 2005, Foreign companies licensed by similar regulatory bodies in their countries to practice the brokerage activity shall be exempted from applying this administrative requirements provided that they have experience in the area of commodities and/or capital markets for not less than five (5) years.
Checklists outlining the documents and conditions to adhere to by the Broker Members can be found in this section below: