SCA Launches A Fintech Project Targeting UAE Markets Jointly with PwC

The Securities and Commodities Authority (SCA) entered into an agreement with PricewaterhouseCoopers (PwC) to develop a regulatory framework for financial and regulatory technology in the UAE capital markets. Under the agreement, PwC will provide services aimed at developing a regulatory framework for financial technology in the UAE capital markets in four stages, as follows:
Stage 1:
This stage involves analyzing fintech regulations in force in capital markets and operation models used by regional and international authorities in line with best practices, then submitting a report comparing the existing regional and international frameworks.
Stage 2:
This stage involves formulating a policy (or general principles) for financial technology that is consistent with SCA's vision and mission and in line with international practices and soliciting industry feedback on this policy, then making the necessary changes, as deemed appropriate.
Stage 3:
This stage is about developing a regulatory sandbox—including the guiding principles and the application lifecycle—in line with best practices adopted by six specified countries. It involves soliciting industry feedback and then making the necessary changes, as deemed appropriate. It also includes organizing a workshop for key stakeholders to present the advanced policy framework and the experimental lab, plus developing a business plan for setting-up this lab in UAE capital markets.
Stage 4:
This stage involves devising a model and an operation plan—including internal processes, roles and responsibilities, and points of contact with the Central Bank—and soliciting industry feedback, then making the necessary changes, as deemed appropriate. It takes into consideration first party feedback to improve the level of performance.