Cabinet Resolution No. (113) of 2022 on Publishing Violations Related to Legislations of the Securities and Commodities Authority and the Licensed Markets

§Preamble

United Arab Emirates The Cabinet

The Cabinet Resolution No.: (113) of 2022 On Publishing Violations Related to Legislations of The Securities & Commodities Authority and the Licensed Markets The Cabinet:

- Having perused the Constitution,

- The Federal Law No.: (1) of 1972 concerning the Competencies of the Ministries and the Powers of the Ministers, as amended,

- The Federal Law No. (4) of 2000 concerning the Emirates Securities and Commodities Authority and Market, as amended ,

- The Federal Decree Law No. (32) of 2021 concerning Commercial Companies,

- The Cabinet Resolution No. (13) of 2000 concerning the Regulation as to the Functioning of the Securities and Commodities Authority, as amended,

- Based on the submissions by the Chairman of the SCA and the approval by the Cabinet, Has resolved:

§Article 1 — Definitions

In applying the provisions of this Resolution, the following words and terms shall have the meanings stated opposite to them respectively, unless the context requires otherwise:

State: The United Arab Emirates Authority: The Securities & Commodities Authority (SCA) Board: The Authority's Board of Directors.

Market: The securities or commodities market licensed in the State

according to the provisions of the Federal Law No. (4) of 2000 concerning the Emirates Securities and Commodities Authority and Market that is mentioned above. Person: The natural or legal person committing the violation.

§Article 2 — Resolution objectives

This Resolution aims to achieve the following:

1. Set the regulating frameworks for publishing violations.

2. Protect the market and the investors.

3. Prevent the persons violating the Authority's legislations from

causing damage to the investment environment in the State.

4. Raise the investment awareness, protect investors and ensure

sound dealing bases in the market.

§Article 3 — Scope of application

The provisions of this Resolution shall apply to the violations committed by the companies whose securities are listed on the market, the members of the board of directors and the managers of such companies and the dealers in the market, along with the entities licensed by the Authority, that are committed in violation of the provisions of the Federal Law No. (4) of 2000 concerning the Emirates Securities and Commodities Authority and Market and the Federal Decree Law No. (32) of 2021 on Commercial Companies that is mentioned above, as well as the other legislations, laws, resolutions, instructions, guidelines, circulars or rules that are applicable by the SCA and the markets licensed by it.

§Article 4 — The power of publication approval

1. The Board or its authorized representative may publish the violations if they meet the conditions stated in article (5) hereof, provided that the publication decision shall be approved by the board's chairman or his authorized representative.

2. The relevant market's board of directors may – after receiving the approval by the Board – publish the violations, the names of the parties committing them and the administrative penalty enforced in this regard concerning the violations against the operative and executive rules applicable by it, provided that the decision of the board of directors of the market concerning publication shall be approved by the chairman thereof.

§Article 5 — Violations Publication Controls

The following controls shall be observed when publishing a violation:

1. The administrative penalty resulted from the violation shall be one of the following penalties:

A. Financial fine exceeding (50) fifty thousand dirhams. B. Temporary suspension from practicing the activity. C. Temporary suspension of trading.

D. Cancellation or deregistration of the license of the entities licensed by the Authority.

E. Suspension or cancellation of the accreditation of the employees of the entities licensed by the Authority. F. Suspension or delisting the security listed on the market.

2. Lapse of the term specified for filing grievance against the decision issued with enforcement of administrative penalty without filing grievance against it, or issuance of a decision dismissing the grievance according to the legislations regulating the SCA's work.

3. After completion of the procedures of referring the person to the Public Prosecution, in the cases where the Authority decides referral to the Public Prosecution.

§Article 6 — Publication Content

1. The publication mentioned in article (7) hereof shall include the committed violation in particular, the person committing the same, the nature of the administrative penalty enforced against him and the date of the decision of penalty enforcement.

2. As exception from clause (1) of this article, publication may be limited to mentioning the violation and the administrative penalty resulted therefrom without mentioning the name of the person committing the violation, in any of the following cases: A. If the party committing the violation is referred to the Public Prosecution.

B. If the violation is committed for the first time, unless the penalty resulted from the violation is the cancellation of the license or unless the violation shall affect stability and soundness of the transactions regulated, controlled and supervised by the Authority as the Board deems appropriate.

C. In any other case concerning which a decision is issued by the Board for the sake of the public interest.

§Article 7 — Publication mechanism

1. Publication shall be made on the website of the Authority and the relevant market, along with any of the following means: A. Daily newspapers issued in the State.

B. Social media

C. The financial markets' website.

D. Any other means approved by the Board.

2. The violation shall be published on the website of the Authority and the relevant market for a period of not less than (30) thirty days starting from the publication date. That period may be extended in the event that the violation is not rectified or according to the nature of the committed violation and its seriousness, provided that a decision of extension shall be issued by the Board, its representative or the board of directors of the relevant market.

§Article 8 — Publication suspension or cancellation

The Board or its authorized representative may suspend or cancel the decision of the violation publication according to the public interest considerations.

§Article 9 — Publication of investigations

The Board or its authorized representative may, in the cases that it deems appropriate, publish a notice or press releases upon commencement of the investigation on some of the serious violations or as required by the public interest.

§Article 10 — Cancellations

Every provision violating or contradicting with the provisions of this Resolution shall be cancelled.

§Article 11 — Publication and enforcement of the Resolution

This Resolution shall be published in the official gazette and shall come into force on the day following the date of publication thereof.

Mohammed bin Rashed Al Maktoum Prime Minister Duly sealed _____________________ Issued by us:

On: 13/ Jumada Al Oula/ 1444 A.H Corresponding to: 7/ December / 2022 A.D