CMA Decision No. 3/Chairman of 2017 · UAE Federal
Chairman decision organising the promotion and introduction of financial products, now listed by the CMA among superseded regulations.
Decision No. 3/R.M of 2017 regulated the promotion of financial products and the introduction of clients to financial service providers in the UAE. Issued in Abu Dhabi on 10 January 2017 under Federal Law No. 4 of 2000, it took effect the day after publication in the Official Gazette (Article 21). The qualified investor definition was replaced by Decision No. 37/R.M of 2019 from 1 December 2019 and adjusted by Decision No. 9 of 2020; Decision No. 30/R.M of 2017 removed temporary suspension from 30 November 2017; Decision No. 35/R.M of 2019 added a reporting clause. The Capital Market Authority (the former Securities and Commodities Authority) now lists it among superseded regulations.
Article 1 defined promotion as marketing, distributing or advertising a financial product by any means, and a qualified investor as, among others, a company meeting two of AED 75 million assets, AED 150 million revenue or AED 7 million equity, or an individual with AED 4 million net equity excluding the main home and AED 1 million annual income. Article 2 exempted promotion to qualified investors other than solvent individuals, listed products, government issues, reverse solicitation and intra-group introductions. Article 4 required a promoter licence with paid-up capital of at least AED 1 million and a fee of AED 10,000; Article 6 set annual renewal at AED 5,000.
Article 9 required notice to the Authority of each product promoted and prior approval for fund units. Articles 10 and 11 regulated promotional material and conduct, including suitability checks. Article 12 limited private offerings of foreign funds to qualified investors with a minimum subscription of AED 500,000, or AED 1 million for a free zone fund. Article 13 let licensed financial firms, regulated foreign firms and banks act as introducers with Authority approval. Article 17 set the sanctions.
Companies and branches licensed to promote financial products in the UAE, introducers approved by the Securities and Commodities Authority, issuers and foreign funds whose products were marketed to UAE investors, and their approved staff, while the decision was in force.
English official text in 21 articles. Open the full text or jump to a provision:
| Article 1 | Defines promotion, financial products and qualified investor, including a company meeting two of AED 75 million assets, AED 150 million revenue or AED 7 million equity, and an individual with AED 4 million net equity and AED 1 million income. |
| Article 2 | Excludes listed products, promotion to qualified investors other than solvent individuals, government issues, documented reverse solicitation, intra-group promotion and introductions forming part of a consultant's advice. |
| Article 4 | Promoter must be a UAE company or regulated foreign branch with promotion in its objects, paid-up capital of at least AED 1 million and a licence fee of AED 10,000. |
| Article 9 | Promoter must notify the Authority before promoting any financial product, which may stop it within 10 days, and must obtain approval within 15 days before promoting investment fund units. |
| Article 11 | Promoter must use clear, non-misleading material, give no unlicensed advice, warn of exchange-rate and past-performance risk, hold no client money without approval and assess suitability against the investor's risk appetite. |
| Article 12 | Foreign funds must be regulated and licensed at home; private offerings only to qualified investors by direct contact, minimum subscription AED 500,000, or AED 1 million for a free zone fund; promoter keeps a unitholder register. |
| Article 13 | Introduction functions may be approved for Authority-licensed firms, firms regulated by a similar regulator and licensed banks and insurers; decision within 15 days of a complete application. |
| Article 17 | Warning, fine up to the statutory maximum, suspension of up to one year or cancellation of licence or approval; staff face warning, two-month suspension or loss of approval. |
Article 17 allowed the Authority to warn a promoter or introducer, fine it up to the maximum in the Law, suspend it for up to one year, cancel its licence or approval for loss of a condition, serious failure, unpaid fees or fines, bankruptcy or liquidation, and cancel or suspend promotion operations. Approved staff faced warning, suspension of up to two months or loss of approval; Article 18 allows violators to be named.
Clients regularly ask whether they may market an overseas fund or investment product to contacts in the UAE, or take a fee for introducing investors to a foreign manager. Under this decision both were licensed or approved functions unless an exemption applied, and promotion and introduction remain licensed financial activities under the CMA's current rulebook. Polaris is not licensed by the CMA and does not promote or introduce financial products. We explain where the licensing line falls, form and administer the company for the client's chosen route with its licensed adviser, and keep corporate, UBO and AML records in order. Older distribution and introducer agreements often cite this decision, and we flag them for review against the current rules.
| Cites | Former SCA Law |
“Cites” and “Cited by” are built automatically from references in the full texts held in this library; they cover only instruments in the library.
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