| Country Manuals Products – We would like to inform you that BRP has updated its COUNTRY MANUAL PRODUCTS for the following jurisdiction: NORWAY OUT OF EEA (Def, RS, BT & RT) |
| SOURCE OF CHANGES | ANSWERS |
| Law/Regulation | YES |
| New Position of the Authorities | NO |
| Evolution of Expert’s interpretation | YES |
Definitions & Concepts, Regulatory Overview, and Behaviour Template
Regulatory changes
– The UAE Securities and Commodities Authority (“SCA”) issued on 9 May 2021 the Decision of the Chairman of the Authority’s Board of Directors No. (13/R.M) of 2021 on the regulations manual of the financial activities and status regularization mechanism (“SCA Rulebook”), which introduces a more consitent regulatory framework for financial activities supervised by the SCA (i.a. a new definition of professional investors and exceptions to the promotion rules.) For a detailed summary of the key changes and implications, please see our BRP Alert – UAE 1/2021 of 6 July 2021).
Material changes
In line with the regulatory changes outlined above, the Country Manual has been reviewed to ensure that the content of all the documents remains accurate and up to date. The changes/modifications are as follows:
– The new definition of professional investors has been included in the Definitions & Concepts. Accordingly, the Behaviour Template now contains only two categories of investors (Retail and Professional Investors).
– In alignment with the Country Manual Private Banking, investment research and financial analysis, publications and other marketing material referring to specific financial products as well as the provision of investment advice trigger local licensing requirements. Accordingly, the Behaviour Template answers the relevant scenarios in the UAE (at target) with “Grey zone/NO” (for active solicitation) and “Grey zone” (for specific reverse solicitation and ongoing advice).
– Further, it is stated in the Regulatory Overview that the provision of execution only services in the UAE triggers local licensing requirements. The Behaviour Template hence answers the relevant scenarios with “NO”.
– In addition, based on guidance from our local counsel, the “current market practice” (referred to as “Private Placement Exemption CIS/Securities” in the Behaviour Template) was amended to specifically reflect the new SCA Rulebook and local licensing requirements. In this context, please note that the exceptions to the “promotion rules” do not apply as the provision of investment research and financial analysis, publications and other marketing material referring to specific financial products as well as the provision of investment advice are assumed to constitute financial consultancy activities and thus trigger local licensing requirements. As a consequence, registered financial products may only be distributed without/outside the scope of an ongoing advisory agreement (spot advice) towards Professional Investors (within the “current market practice”). The Behaviour Template hence provides the answers “Grey zone/YES: Private Placement Exemption CIS/Securities” for Professional Investors and “Grey zone/NO” for Retail Investors.
For more information, please contact us: info@brpsa.com
Best regards,