UAE: SCA Cautions Companies On Unapproved Investment Telemarketing Calls

The Securities and Commodities Authority (SCA) has declared that marketing services and products related to securities and commodities trading in the UAE via phone calls is a violation if the company lacks prior approval from the SCA. This announcement was made through a circular issued today.

The SCA emphasised that recipients of marketing calls related to securities and commodities trading should report any calls that breach the regulations. This measure is part of the authority's efforts to ensure compliance with the Cabinet decision on phone call marketing regulations.

The SCA stressed that companies must adhere to the provisions outlined in the Cabinet decision regarding phone call marketing. The authority aims to control violations and practices that contravene these provisions. Companies are prohibited from using undue pressure or deceptive tactics in their marketing practices.

Additionally, marketing calls outside the permitted hours of 09:00 to 18:00 are considered violations. Companies must also use local numbers issued by licenced telecommunications companies in the UAE, registered under their commercial licence, when making marketing calls.

The public can verify whether a company has obtained a licence from the SCA by visiting its website. The list of licenced companies is available online, and individuals can report violations through the "Reporting capital market violations" service on the SCA website.

Furthermore, receiving marketing calls despite being registered in the Do Not Call Registry (DNCR) is also a violation. The SCA has issued detailed controls and procedures for telemarketing of securities and commodities trading services based on Cabinet Decision No. (56) of 2024.

This initiative underscores the SCA's commitment to ensuring that companies comply with established regulations and protect consumers from aggressive or misleading marketing practices.

With inputs from WAM