The Securities and Commodities Authority (SCA) announced on Wednesday that it is launching a new ‘Finfluencer’ license for individuals promoting financial products in the United Arab Emirates (UAE).
“Introducing the Finfluencer license is not merely a regulatory measure; it is a strategic move to redefine the role of regulators in the digital economy,” said SCA CEO Waleed Saeed Al Awadhi. “Through this initiative, the SCA aspires to elevate global benchmarks of market integrity, foster transparency, and nurture a disciplined and trustworthy financial environment.”
The Gulf state regulator said the new license will apply to anyone who promotes investments in financial products, including cryptocurrencies.
“This may be done through traditional or modern media channels, such as various written or audio social media platforms, participation in seminars, meetings, or forums, blogging, public appearances by any means, or through statements, opinions, or analyses about the present or future value, price, or expected performance,” the regulator’s statement said.
“It also includes individuals who engage the public through content, visuals, advice, recommendations, discussions, information, analyses, opinions, or reports related to financial investments or specific financial products within the country.”
Do IBs and affiliates need a license?
The interesting question that comes from this is whether pretty much any affiliate or partner for a broker based in the UAE now needs a license to do business.
As SCA’s statement suggests, the scope of the new license is broad and could presumably cover ‘real world’ education providers, someone running a YouTube channel, or a community, like a Telegram or Discord group.
SCA has said that applicants for the license will not have to pay any fees to register for the first three years that the license is operational, meaning the actual cost of getting regulated won’t be too high.
However, it does suggest the kind of free for all we’ve seen in the UAE over the last few years may be coming to an end or that there will be more oversight of the industry.
