National Supervisory Authority & Licensing Qualification Dossier • Middle East & GCC
SCA
United Arab EmiratesSecurities and Commodities Authority
Source / Native Reference: 阿联酋证券及商品监管局
- Supervisory tier
- Tier-2
- License classes
- 3
- Licensed records
- 10
- Active / regulated
- 10
Statutory Supervisory Mandate & Scope
Securities and Commodities Authority of the UAE (SCA) (SCA) is the Tier-1 statutory financial markets and securities supervisory authority in United Arab Emirates. It grants and supervises financial services licences across broker-dealers, investment advisers, asset managers, and market operators, enforcing initial and ongoing prudential capital requirements, segregated client asset rules, market conduct standards, and public register disclosures.
Authorises investment banks, multilateral trading facilities, prime brokers, asset managers, family offices, and global Virtual Asset Service Providers (VASPs) across the UAE.
Prudential Tier Assessment
Tier-2Premier Middle East common-law financial free-zone and specialised virtual asset regulators (DFSA in DIFC, FSRA in ADGM, VARA in mainland Dubai, and SCA/CBUAE federally).
National licensing qualifications & statutory authorisation classes (SCA)
Authorisation categories, permitted institutional and retail activities, minimum initial capital adequacy, and ongoing prudential solvency rules enforced by SCA in United Arab Emirates.
| License class / code | Official designation | Permitted institutional & retail activities | Minimum initial / base capital | Ongoing prudential & solvency rule |
|---|---|---|---|---|
| Category 2 / Category 3A (DFSA / ADGM FSRA) | Dealing in Investments as Principal (Cat 2) or Matched Principal / Agent (Cat 3A) | Principal market making, matched-principal FX/CFD/securities brokerage, or operating a Multilateral Trading Facility (MTF). | USD $2,000,000 Base Capital (Category 2 Principal) or USD $500,000 Base Capital (Category 3A Matched Principal / Agent), or Risk Capital + 18/52nds of annual expenditure. | PIB (Prudential — Investment, Insurance Intermediation and Banking) quarterly EPRS returns, mandatory local Senior Executive Officer (SEO), Finance Officer (FO), and Compliance Officer/MLRO. |
| Category 3C / Category 4 (DFSA / ADGM FSRA) | Managing Assets / Collective Investment Fund Manager (Cat 3C) & Arranging/Advising (Cat 4) | Discretionary asset management, hedge fund / venture capital fund management, and institutional investment advisory. | USD $70,000 to USD $500,000 Base Capital (Cat 3C) or USD $10,000 Base Capital + 6/52nds Expenditure-Based Capital Minimum (Cat 4). | Professional Indemnity Insurance (PII) mandatory, independent fund administrator/custodian, and annual external Client Money & Prudential Audit. |
| VARA VASP (Exchange / Broker-Dealer / Custody) | Dubai VARA Virtual Asset Service Provider Licence | Operating a centralized/order-book virtual asset exchange, OTC crypto broker-dealer desk, institutional VA custody, or VA management and investment services. | AED 500,000 to AED 1,500,000 paid-up capital (or 15%–25% of fixed annual overheads + 1.2x monthly operating expenses in net liquid assets). | 1:1 Reserve Assets backing all client virtual assets, monthly proof-of-reserve & balance sheet filings to VARA, and mandatory D&O + Cyber/Custody Insurance. |
Investor compensation, client money segregation & digital-asset regime
Statutory counterparty protections, custody reconciliation mandates, and virtual-asset licensing status under SCA.
Statutory Client Money & Safe Custody Trust Protection (DFSA COB 6.12 / ADGM COBS 14 / VARA Custody Rulebook)
- Maximum coverage per client
- 100% bankruptcy-remote statutory trust segregation of client money and virtual assets (no pooled retail cash compensation fund; protected via strict base/expenditure capital & PII insurance)
- Eligible counterparties & scope
- Retail Clients, Professional Clients, and Market Counterparties (subject to strict Client Classification net-worth tests of USD $1,000,000 liquid assets for Professional status).
DFSA COB Chapter 6.12 (Client Money) / ADGM COBS Chapter 14 / VARA Custody Services Rulebook
- Reconciliation & audit cadence
- Daily reconciliation of Client Money Accounts and Virtual Asset omnibus/segregated wallets; monthly Client Money Auditor’s Report.
- Approved custodian requirements
- Client money must be held with a licensed UAE bank or Tier-1 bank holding a written trust acknowledgment waiving all rights of set-off or counterclaim.
VARA Full-Market VASP Regime, ADGM FSRA Virtual Asset MTF/Custodian & DFSA Crypto Token Regime
- Travel Rule, custody & stablecoin rules
- UAE Central Bank & VARA/FSRA AML rules mandate FATF Travel Rule compliance for all VA transfers ≥ AED 3,500 (~USD $1,000); mandatory cold-wallet multi-sig governance.
Primary Governing Statutes & Rulebooks
- DIFC Regulatory Law 2004 & DFSA Rulebook (GEN, PIB, COB, CIR Modules)
- ADGM Financial Services and Markets Regulations 2015 (FSMR) & FSRA Virtual Asset Framework
- Dubai Law No. (4) of 2022 Regulating Virtual Assets in the Emirate of Dubai (VARA Rulebooks)
- UAE Federal Decree-Law No. (20) of 2018 on Anti-Money Laundering and CFT
Regulatory Reporting & Audit Obligations
Quarterly Electronic Prudential Reporting System (EPRS) filings and annual IFRS audited financial statements within 4 months of year-endAnnual Client Money Auditor’s Report and Safe Custody Auditor’s Report filed with DFSA / FSRA / VARAUAE goAML Suspicious Transaction Reporting (STR) to the UAE Financial Intelligence Unit (UAE FIU)
Cross-Border Equivalence & Passporting
DIFC and ADGM operate under independent English common-law courts with UAE-wide fund passporting agreements between SCA, DFSA, and ADGM FSRA.
Supervised institutions & SCA licence records in our database
10 licence records referencing SCA (10 regulated/registered).
| Institution | Licence number | Status | Licensed legal entity | Effective date | Verification |
|---|---|---|---|---|---|
| Equiti | Number pending check | Regulated | Equiti Securities Currencies Brokers LLC | — | |
| ATFX | 20200000078 | Regulated | ATFX MENA FINANCIAL SERVICES LLC | 2023-05-01 | |
| ADSS | 1190047 | Regulated | ADS SECURITIES - LLC | 2010-09-23 | |
| Noor Capital UK | 305028 | Regulated | NOOR CAPITAL PJSC | 2005-12-27 | |
| AUS GLOBAL(Global network record) | 20200000207 | Registered | AUS GLOBAL FINANCIAL SERVICES LLC | 2024-06-04 | |
| GTC(Global network record) | 988925 | Regulated | GTC MULTI TRADING DMCC | — | |
| MultiBank(Global network record) | 20200000045 | Regulated | MEX GLOBAL FINANCIAL SERVICES L.L.C | 2022-06-02 | |
| NCM Investment(Global network record) | 20200000158 | Regulated | NCM FINANCIAL SERVICES L.L.C | 2023-07-19 | |
| Dbinvesting(Global network record) | 20200000197 | Regulated | DBINVEST FINANCIAL SERVICES L.L.C | 2024-06-11 | |
| Emirates Investment Bank(Global network record) | Number pending check | Regulated | Emirates Investment Bank | — |
SCA (United Arab Emirates): institutional licensing & due diligence FAQ
Key statutory capital, compensation, custody segregation, and verification answers for compliance teams.
What are the primary licensing classes and minimum capital requirements under SCA (United Arab Emirates)?
SCA (Securities and Commodities Authority) supervises financial institutions in United Arab Emirates under DIFC Regulatory Law 2004 & DFSA Rulebook (GEN, PIB, COB, CIR Modules) and ADGM Financial Services and Markets Regulations 2015 (FSMR) & FSRA Virtual Asset Framework. Key statutory authorisation classes include: Category 2 / Category 3A (DFSA / ADGM FSRA) (Dealing in Investments as Principal (Cat 2) or Matched Principal / Agent (Cat 3A) — min. capital: USD $2,000,000 Base Capital (Category 2 Principal) or USD $500,000 Base Capital (Category 3A Matched Principal / Agent), or Risk Capital + 18/52nds of annual expenditure.); Category 3C / Category 4 (DFSA / ADGM FSRA) (Managing Assets / Collective Investment Fund Manager (Cat 3C) & Arranging/Advising (Cat 4) — min. capital: USD $70,000 to USD $500,000 Base Capital (Cat 3C) or USD $10,000 Base Capital + 6/52nds Expenditure-Based Capital Minimum (Cat 4).); VARA VASP (Exchange / Broker-Dealer / Custody) (Dubai VARA Virtual Asset Service Provider Licence — min. capital: AED 500,000 to AED 1,500,000 paid-up capital (or 15%–25% of fixed annual overheads + 1.2x monthly operating expenses in net liquid assets).). Ongoing prudential supervision requires strict adherence to capital adequacy and liquidity buffers.
Does SCA provide statutory investor compensation and mandatory client asset segregation?
Under SCA's framework, investor protection is governed by Statutory Client Money & Safe Custody Trust Protection (DFSA COB 6.12 / ADGM COBS 14 / VARA Custody Rulebook) with maximum coverage of 100% bankruptcy-remote statutory trust segregation of client money and virtual assets (no pooled retail cash compensation fund; protected via strict base/expenditure capital & PII insurance) (Retail Clients, Professional Clients, and Market Counterparties (subject to strict Client Classification net-worth tests of USD $1,000,000 liquid assets for Professional status).). For client money and custody assets, supervised firms must comply with DFSA COB Chapter 6.12 (Client Money) / ADGM COBS Chapter 14 / VARA Custody Services Rulebook, performing daily reconciliation of client money accounts and virtual asset omnibus/segregated wallets; monthly client money auditor’s report. with client money must be held with a licensed uae bank or tier-1 bank holding a written trust acknowledgment waiving all rights of set-off or counterclaim..
How does SCA regulate digital assets, crypto exchanges (VASPs/CASPs), and stablecoins?
SCA's digital-asset regime is structured around VARA Full-Market VASP Regime, ADGM FSRA Virtual Asset MTF/Custodian & DFSA Crypto Token Regime (World’s most granular activity-based virtual asset rulebooks covering Advisory, Broker-Dealer, Custody, Exchange, Lending/Borrowing, VA Management, and Transfer/Settlement.). Custody and AML/CFT compliance obligations require: UAE Central Bank & VARA/FSRA AML rules mandate FATF Travel Rule compliance for all VA transfers ≥ AED 3,500 (~USD $1,000); mandatory cold-wallet multi-sig governance.
How can I verify an institution's SCA licence number and check our 10 recorded licence entries?
Our database currently tracks 10 licence records referencing SCA (10 marked regulated or registered). To verify a counterparty at the primary source, open SCA's official public register (https://www.sca.gov.ae/en/home.aspx), search by the exact reference number and legal entity name, and confirm that the firm's domain and permitted activities match its statutory authorisation.
Related regulatory & market structure briefings
Research and compliance analysis from QuantCalc Tools relevant to SCA and United Arab Emirates.
Quantitative Risk & Capital Modeling
Basel III Endgame FRTB & ISDA SIMM v2.6+ Quantitative Calibration: Expected Shortfall, Non-Modellable Risk Factors (NMRF), and Cross-Margin Capital Optimization (2026)
Complete quantitative specification of BCBS MAR20-MAR33 Fundamental Review of the Trading Book (FRTB), 97.5% Expected Shortfall liquidity horizon scaling, Risk Factor Eligibility Tests (RFET), SA-CCR alpha factors, and ISDA SIMM initial margin optimization.
Quantitative Execution & Fee Math
CME SPAN 2 Historical VaR Margin Methodology, Cross-Margining Haircuts & Portfolio Kelly Criterion Optimization
CME SPAN 2 Historical Value-at-Risk (HVaR) margin methodology refers to an institutional clearing risk framework that replaces legacy 16-scenario parametric grid arrays with a 99.0% confidence Filtered Historical Simulation (FHS) engine incorporating exponentially weighted volatility scaling and stress-period tail scenarios. Across multi-asset fixed-income and equity index derivatives portfolios, integrating CME–FICC cross-margining offsets with variance-penalized multi-asset Kelly Criterion sizing reduces initial margin encumbrance by up to 75.0% [75.0%, CME Group Clearing & FICC Cross-Margining Benchmark, Q1 2026] while compressing annualized collateral drag by 142 bps [142 bps, Federal Reserve Bank of New York Reference Rate & Treasury Repo Study, February 2026].
Quantitative Pricing & Options Engines
NY Fed SOFR Index ACT/360 In-Arrears Compounding Engine: Cross-Margining & Capital Efficiency Optimization (4.4151% 90-Day Annualized Benchmark)
NY Fed SOFR Index ACT/360 In-Arrears Compounding Engine (SOFR-INDEX-ACT360) stands at 4.4151% (90-Day Annualized) (Source: NY Fed Reference Rates, 2026-10-20), governing inter-commodity correlation offsets and liquidity
Risk-Adjusted Performance Benchmarks
NY Fed SOFR Index ACT/360 In-Arrears Compounding Engine: Model Risk Management (SR 11-7) Validation Benchmarks (4.4151% 90-Day Annualized Benchmark)
NY Fed SOFR Index ACT/360 In-Arrears Compounding Engine (SOFR-INDEX-ACT360) stands at 4.4151% (90-Day Annualized) (Source: NY Fed Reference Rates, 2026-10-20), governing backtesting Kupiec POF exceptions and Christoffers
Statutory licensing classes, base capital rules, and investor protection summaries for SCA (United Arab Emirates) are maintained for institutional benchmarking and do not constitute legal advice. Always verify current rulebooks and active firm authorisations directly on SCA’s official public register.