UAE SCA Introduces Region's First Finfluencer License

According to an official announcement, the United Arab Emirates’ Securities and Commodities Authority (SCA) has launched the region’s first “Finfluencer” (financial influencer) license, aiming to regulate digital financial content and enhance investor protection.

The new license provides a governance framework for individuals offering investment analysis, financial recommendations, and financial promotions related to regulated products or entities through digital or traditional platforms. Eligible applicants for the license within the UAE must register with the SCA and adhere to all applicable regulatory obligations, ensuring the highest standards of investor protection and reinforcing public trust in the local capital markets.

Finfluencer Activities Need to be Licensed Include:

• Providing financial recommendations on the purchase, sale, or holding of financial products, virtual assets, or offering recommendations related to a financial service, or any local resource within the country. 
• Offering statements, analyses, and opinions on the present or future value, price, or expected performance. 
• Engaging the public through content, visuals, advice, recommendations, discussions, information, analyses, and reports on financial products and investment opportunities within the country.

These activities can be conducted across various channels, including social media, seminars, meetings, forums, blogging, and public appearances by any means. 

The SCA has waived registration, renewal, and legal consultation fees related to this service for a period of three years.

As financial influencers pose increasing risks to investors, regulatory authorities worldwide are stepping up enforcement efforts to protect investors. The Monetary Authority of Singapore (MAS) and the Securities Commission of Malaysia (SC) have both required that Finfluencers offering financial advice must be authorized. The Financial Conduct Authority (FCA) interviewed 20 finfluencers under caution, and the Cyprus Securities and Exchange Commission (CySEC) launched a campaign to protect investors from Finfluencer risks.