The Securities and Commodities Authority has initiated a new phase of smart regulation in the financial sector through an extensive workshop aimed at educating licensed companies on an updated risk assessment methodology. This methodology, developed based on international best practices, aligns with the country’s regulatory requirements. The workshop attracted over 587 participants from more than 215 companies, showcasing the sector’s commitment to engaging with regulatory changes while striving for the highest levels of transparency and accountability.
During the workshop, representatives from the authority provided a comprehensive presentation on the newly developed annual risk assessment model, which will serve as the foundational framework for supervision and oversight moving forward. The new approach allows the authority to concentrate on critical areas impacting market stability, including risks associated with money laundering and terrorism financing, financial risks and solvency, market behavior and investor protection, operational risks and governance, as well as cybersecurity and technology-related risks.
Digital Models
The authority introduced a new electronic system designed for collecting company responses, detailing the mechanisms for completing digital forms and submitting data in a simplified and secure manner.
The authority emphasized that this digital transformation not only aims to standardize data and enhance reporting quality, but also simplifies the compliance process for regulated entities. This contributes to a more precise and effective oversight framework, improving the authority’s ability to anticipate and manage risks proactively.
Additionally, the new methodology helps reduce the burden on companies by minimizing redundant requirements and regulatory reports, streamlining data collection processes. This reflects the added value of this approach and its positive impact on enhancing oversight efficiency and fostering a better business environment.
Integrated Strategy
Waleed Al Awadi, CEO of the authority, stated, “We are at a pivotal moment in the development of the financial sector in the country. The launch of the updated risk assessment methodology is not just a regulatory update; it constitutes a comprehensive strategy aimed at building a sustainable, robust, and resilient financial sector that can withstand challenges. It enhances risk-based oversight efficiency, supports increased compliance levels, and strengthens investor confidence in the country’s markets, positively impacting the competitiveness and attractiveness of the national economy.”
The authority noted that the positive engagement from licensed companies during the workshop reflects the sector’s genuine commitment to adhering to modern trends and fostering a risk management culture.
Ongoing Communication
The authority emphasized that ongoing communication and collaboration with the sector will continue to ensure a smooth and complete implementation of the methodology, supporting sustainable growth and strengthening the resilience of the financial markets in facing future risks confidently and effectively.
With this initiative, the authority reaffirms its position as a leading regulatory body committed to innovation, driving the financial sector toward higher standards of transparency, efficiency, and stability, in line with global best practices and positioning the UAE among the most advanced and mature financial markets in the region and worldwide.