emirates7 - The Securities and Commodities Authority (SCA) has approved regulations for Robo-Advisor services as part of its transformational initiatives, marking a key move towards creating a secure digital investment environment in the UAE.
This regulatory framework demonstrates the SCA’s dedication to digital transformation and the enhancement of intelligent financial services, aligning with global trends and investor expectations. Its goal is to boost the competitiveness of the UAE’s financial markets, speed up digital adoption, and support the UAE’s “We the UAE 2031” vision of building a knowledge-based, competitive, and sustainable economy.
Licensed portfolio management firms are now permitted to offer robo-advisory services exclusively through digital platforms that leverage artificial intelligence (AI) and advanced algorithms to provide automated investment advice. These services maintain the highest standards of governance, transparency, and investor protection within the approved portfolio management structures, whether discretionary or non-discretionary, and according to client agreements.
AI-driven robo-advisors help construct well-balanced investment portfolios tailored to investors’ objectives and risk tolerance, improving asset management efficiency and driving the sector’s ongoing digital evolution.
The regulatory framework enforces stringent measures to guarantee quality performance and safeguard investors, including mandatory independent IT audits, strict cybersecurity requirements, periodic reviews of algorithms and systems, and full transparency regarding service costs and risks.
Waleed Saeed Al Awadhi, CEO of the SCA, stated, “Regulating the Robo-Advisor service clearly reflects our strategic vision to develop a forward-thinking regulatory framework that keeps pace with significant shifts in the global financial landscape and raises investor protection standards in line with accelerating digital progress.
Integrating AI into investment decisions is more than just a technological advancement; it represents a transformative milestone that boosts portfolio management efficiency and unlocks new opportunities to provide investors with smart, sustainable, and secure financial solutions.”
He further emphasized that this initiative strengthens the UAE’s status as a world-class financial hub by promoting continuous innovation and establishing dynamic regulatory frameworks designed to meet future market challenges.
This regulation is a fundamental part of a series of strategic efforts by the SCA to promote financial inclusion by expanding access to intelligent and secure investment options.
The SCA remains at the forefront of efforts to build a resilient, future-ready financial ecosystem based on transparency, strong governance, and innovation, aligning with global financial trends and reinforcing the UAE’s role as a regional and global center for the digital economy.
This regulatory framework demonstrates the SCA’s dedication to digital transformation and the enhancement of intelligent financial services, aligning with global trends and investor expectations. Its goal is to boost the competitiveness of the UAE’s financial markets, speed up digital adoption, and support the UAE’s “We the UAE 2031” vision of building a knowledge-based, competitive, and sustainable economy.
Licensed portfolio management firms are now permitted to offer robo-advisory services exclusively through digital platforms that leverage artificial intelligence (AI) and advanced algorithms to provide automated investment advice. These services maintain the highest standards of governance, transparency, and investor protection within the approved portfolio management structures, whether discretionary or non-discretionary, and according to client agreements.
AI-driven robo-advisors help construct well-balanced investment portfolios tailored to investors’ objectives and risk tolerance, improving asset management efficiency and driving the sector’s ongoing digital evolution.
The regulatory framework enforces stringent measures to guarantee quality performance and safeguard investors, including mandatory independent IT audits, strict cybersecurity requirements, periodic reviews of algorithms and systems, and full transparency regarding service costs and risks.
Waleed Saeed Al Awadhi, CEO of the SCA, stated, “Regulating the Robo-Advisor service clearly reflects our strategic vision to develop a forward-thinking regulatory framework that keeps pace with significant shifts in the global financial landscape and raises investor protection standards in line with accelerating digital progress.
Integrating AI into investment decisions is more than just a technological advancement; it represents a transformative milestone that boosts portfolio management efficiency and unlocks new opportunities to provide investors with smart, sustainable, and secure financial solutions.”
He further emphasized that this initiative strengthens the UAE’s status as a world-class financial hub by promoting continuous innovation and establishing dynamic regulatory frameworks designed to meet future market challenges.
This regulation is a fundamental part of a series of strategic efforts by the SCA to promote financial inclusion by expanding access to intelligent and secure investment options.
The SCA remains at the forefront of efforts to build a resilient, future-ready financial ecosystem based on transparency, strong governance, and innovation, aligning with global financial trends and reinforcing the UAE’s role as a regional and global center for the digital economy.