The Securities and Commodities Authority Board of Directors held its 12th meeting (from the sixth session of the Council) in Dubai, headed by the Minister of Economy and Chairman of the Board, Sultan bin Saeed Al Mansoori.
The Council adopted the "Guide for Institutional Discipline Standards and Governance of Public Joint Stock Companies" which was prepared by the authority’s management in accordance with international best practices, within the framework of the authority's endeavor to develop the supervisory and supervisory system, and to upgrade it to match the best international standards and practices for developing and regulating the securities sector in the country.
Among the most prominent features of the new system is the inclusion of new standards and requirements related to environmental considerations, social responsibility and corporate governance.
During the meeting, the Council reviewed a comparison table between the decision of the Chairman of the Authority’s Board of Directors regarding the standards of institutional discipline and the governance of public joint-stock companies, the draft guide for standards of institutional discipline and the governance of public joint-stock companies, as well as a report on the most prominent new features of the project, which is to compel companies to appoint a Secretary to the Board Management, the conditions for occupying this position, and the duties of the secretary, have been defined in Article (8), obligating companies to appoint the majority of Board members from non-executive independents, in Article (9/5), and making further clarification of the disclosure mechanism For the interests of the member of the Board of Directors New and related to the company by requiring him to submit a “declaration of interest” upon assuming his duties, in Article (11), in addition to introducing criteria of “fitness and convenience” for members of the company’s board of directors, in Article (18), and to make further clarification of procedures for dealing with inconsistencies Interests, and that in Articles (32 - 38).
When approving the draft guide, the Board of Directors directed to take into account not to set the ownership percentage limit for those who wish to appoint any of the representatives appointed by the company related to a number of paragraphs of the draft law, and also directed that companies be given time to implement the new amendments until the end of 2020, provided that The Council then considers extending the deadline, if necessary, according to each individual case.
Relevance criteria
The Authority’s Board of Directors also approved a draft resolution on the “appropriate and appropriate” criteria. These standards mean the information that the licensing authority must obtain and fulfill from each customer - except for the eligible investor - before conducting any dealings with it, by measuring the client’s investment goals, financial position and ability Finance, experience, and other measuring tools that enable the licensing authority to demonstrate the suitability and appropriateness of the customer for the next investment.
Trading commodities
The Authority’s Board of Directors approved a proposal to amend the Authority’s Board Resolution No. (157 R) for the year 2005 regarding the system for listing and trading commodities and commodity contracts, with the exception of foreign commodity brokerage companies from some of the requirements of the aforementioned decision, which are the requirements for the delivery of financial statements reports and the separation of accounts and financial solvency, and that After I take note of the recommendations of the Executive Committee regarding the draft amendment.
The reason for the proposed amendment lies in the difficulty of foreign commodity brokerage firms adhering to the requirements for the delivery of financial statements reports and the separation of accounts and financial solvency, in light of their compliance with regulatory requirements similar to those requirements, but they differ in the mechanism of their implementation, in addition to the fact that these companies are originally subject to similar oversight bodies in The home country, bearing in mind that the exception is limited to foreign companies subject to similar oversight bodies in the mother country imposing similar requirements, provided that this regulatory body is a working member or a member affiliated with the International Organization of Securities Authorities, to ensure cooperation in the My supervision, if necessary.
Electronic voting
The Board of Directors of the Securities and Commodities Authority reviewed a memorandum prepared by the Authority’s administration regarding the use of electronic voting, and decided to experiment with direct and visual electronic voting, starting with the large companies so that it is applied to the three largest companies, banks and one of the insurance sector companies to stand in practice in practice on the challenges that may arise Due to the use of the electronic voting mechanism.
The Council also reviewed a report on the challenges and obstacles facing market makers, the measures taken in this regard, and the recommendations and proposed measures to activate the role of the market maker more effectively.