How UAE brokerage firms should deal with dormant accounts
The Securities and Commodities Authority (SCA) has issued a decision on dormant client accounts held at brokerage firms, obliging these companies to convert customer accounts older than three calendar years that have seen no trading, or have not been updated, to inactive accounts.
Abdullah Al Tarifi, CEO of the SCA, said that the authority aims to protect customers' assets from loss or misuse, adding that the move reflects the SCA's role in protecting investors and safeguarding the rights of all investors and financial market dealers.
He pointed out that the resolution also contributes to easing the physical burden, regulatory and legal obligations incurred by brokerage firms, as a result of maintaining dormant accounts.
Al Tarifi explained that brokerage firms have been notified about the decision, which includes six items that describe the mechanism and procedures for handling dormant accounts.
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