United Arab Emirates Introduces Licensing for Financial Influencers to Safeguard Investors
The United Arab Emirates (UAE) has announced the launch of a 'finfluencer' license, marking a regional first in regulating digital financial content. The Securities and Commodities Authority (SCA), the UAE's financial regulatory body, released a statement on Wednesday detailing the new initiative.
Individuals offering investment analysis, recommendations, and promotions for financial products across digital platforms will be required to obtain this 'finfluencer' license to bolster investor protection. The licensing scheme is aimed at formalizing and supervising digital financial content.
Waleed Saeed Al Awadhi, CEO of the SCA, described the license as a strategic move to redefine the role of regulators in the digital economy and elevate global benchmarks of market integrity, transparency, and trustworthiness.
The move forms part of the SCA's broader efforts to align its regulatory framework with the rapidly evolving landscape of digital finance. To encourage compliance and financial innovation, the SCA has waived registration, renewal, and legal consultation fees related to this service for a period of three years.
Eligible applicants must register with the SCA to qualify for the license. The regulation applies to individuals with at least 1,000 followers who provide financial recommendations related to regulated products or entities within the UAE. Compliance with regulatory obligations is essential to ensure the highest standards of investor protection.
The introduction of the 'finfluencer' license is integral to the SCA's ambitious strategy to establish the UAE as a leading regional and global financial hub. The licensing scheme serves to regulate financial content, enhance transparency, and reduce risks associated with unqualified social media personalities influencing public investment decisions. By promoting trustworthy sources of financial advice and mitigating potential misinformation, the regulation aims to protect investors.
- The Securities and Commodities Authority (SCA) aims to formalize and supervise digital financial content by requiring individuals who offer investment analysis, recommendations, and promotions for financial products across digital platforms to obtain the new 'finfluencer' license.
- Waleed Saeed Al Awadhi, CEO of the SCA, described the license as a strategic move to redefine the role of regulators in the digital economy and elevate global benchmarks of market integrity, transparency, and trustworthiness.
- To encourage compliance and financial innovation, the SCA has waived registration, renewal, and legal consultation fees related to this service for a period of three years.
- Compliance with regulatory obligations is essential to ensure the highest standards of investor protection, and the regulation applies to individuals with at least 1,000 followers who provide financial recommendations related to regulated products or entities within the UAE.
