SCA Urges Financial Influencers To Register For Official Licence To Enhance Investor Protection

The Securities and Commodities Authority (SCA) is taking steps to regulate digital financial markets and protect investors. They are urging financial influencers, known as Finfluencers, to register for official authorisation. This status ensures they meet regulatory standards, promoting transparency and safeguarding market participants' rights.

Waleed Saeed Al Awadhi, CEO of the SCA, highlighted the importance of regulating Finfluencers in today's digital financial landscape. He stated, "In today’s rapidly evolving digital financial ecosystem, regulating Finfluencers activity has become imperative. Finfluencers play a pivotal role in shaping investor decisions. Official authorisation by the SCA underscores their commitment to professional standards and reinforces public trust in the integrity of financial content."

The SCA provides an opportunity for eligible individuals to gain authorised Finfluencer status. This allows them to share investment insights and recommendations on approved financial instruments through various media channels. However, they must strictly adhere to the SCA's standards.

To encourage compliance, the SCA offers a three-year waiver on registration and renewal fees for authorised Finfluencers. Additionally, they provide access to legal advisory services to support these individuals in maintaining compliance with regulatory requirements.

The SCA advises the public to verify a Finfluencer's authorisation before engaging with their content or following their advice. They stress that interactions with unauthorised individuals can pose significant financial risks. The public is encouraged to report any unauthorised activities through the SCA's website or call centre.

Raising public awareness is crucial in defending against unreliable or unregulated financial content. The SCA emphasises that informed engagement is vital for protecting investors from potential risks associated with unauthorised financial advice.

SCA's Strategic Vision

This initiative aligns with the SCA's broader strategy to create a transparent and trustworthy investment environment. It supports the UAE's position as a leading global financial hub committed to implementing top-tier regulatory practices in digital markets.

For those interested in becoming an Authorised Finfluencer recognised by the SCA or reporting non-compliant practices, visit the SCA website or call 800722823 for assistance.

With inputs from WAM