Chairman of the Authority's Board of Directors’ Resolution No. (37/Chairman) of 2019 Concerning Definition of "Qualified Investor"

§Preamble

Chairman of the Authority's Board of Directors’ Decision No. (37/

R.M) of 2019 Concerning Definition of "Qualified Investor"

The Chairman of the Securities and Commodities Authority, having considered,

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

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

- The Cabinet Resolution No. (14/8W) of 2017 concerning the Restructuring of the Securities and Commodities Authority's Board of Directors; and

- Based on the approval of the Authority's Board of Directors in its 11th meeting of the 6th term, convened on 16/09/2019 A.D; and

- Based on the public interest,

Has Decided:

Article (1)

The Definition of (Qualified Investor) shall be amended in all regulations issued by the Authority to be as follows:

“Qualified Investor: The natural or legal person that is capable of managing its own investments by itself according to the following conditions, unless it desires to be just a normal investor”

First : The corporate person that meets any of the following conditions:

§Article 1 — The Federal Government, local governments and governmental

entities, institutions and authorities, or the companies fully owned by any of the aforementioned.

§Article 2 — Foreign governments, and its entities, institutions and authorities

or companies fully owned by any of them.

§Article 3 — International bodies and organizations

§Article 4 — Entities licensed by the Authority or by a similar regulatory

authority.

§Article 5 — A corporate person who meets, at the date of its last financial

statements, at least two of the following requirements:

A. Its total budget of AED (75) million .

B. Has net annual return of AED (150) million.

C. Has funds or paid up capital of AED (7) million.

Second: The natural person accredited by the Authority or by a

similar regulatory authority to perform any of the functions related to financial activities or services.

Third: The natural person who meets the following conditions:

1. His net equity, with the exception of his main house, is valued at AED (4) million.

2. His annual income is not less than one (1) million Dirhams annually.

3. Declaring that he has the adequate knowledge and experience in the field of investment and its risks, or represented by an entity licensed by the Authority, without prejudice to the terms of its licensing.

Article (2)

This Decision shall be published in the Official Gazette and shall

come into force thirty (30) days after the date of its publication.

Eng. Sultan Bin Saeed Al Mansoori Chairman of the Board of Directors

Issued in Abu Dhabi on 09/10/2019 A.D