UAE Regulator Wants To Regulate Robo Advisors

The UAE Securities and Commodities Authority (SCA) has initiated a significant step towards modernizing the financial landscape by releasing a draft regulation for robo-advisor services.

The SCA invites stakeholders, experts, and industry participants to provide feedback on the draft. The aim is to finalize a regulation that reflects the needs of the market while ensuring robust investor protection.

The regulation, accessible on the SCA’s official website, outlines provisions for automated, algorithm-driven platforms offering investment advice and portfolio management services. By leveraging advanced algorithms, these platforms analyze market trends, allocate assets, and adjust portfolios based on client information, market conditions, and individual risk profiles.

The proposed rules aim to embed high-quality service standards and safeguard mechanisms into the operational framework of robo-advisor platforms. These provisions are designed to foster innovation while adhering to the UAE’s broader ambition of becoming a global economic hub by 2031. The initiative aligns with the government’s ‘We the UAE 2031’ vision, promoting transformative projects that enhance competitiveness and deliver impactful cross-sectoral benefits.

This move builds on the UAE’s history of proactive financial regulation aimed at fostering innovation and economic growth. In recent years, the SCA has introduced guidelines for crypto-asset trading, tightened anti-money laundering controls, and supported fintech startups through regulatory sandboxes.

In 2023, the UAE established comprehensive guidelines for virtual asset service providers, positioning itself as a leading jurisdiction for digital finance. Additionally, the country’s emphasis on adopting cutting-edge technologies, such as blockchain, has paved the way for initiatives like the current robo-advisor regulation.

Sky Links secured SCA Category 5 license in UAE

Earlier this week, Sky Links Capital Group announced the acquisition of a Securities and Commodities Authority (SCA) license in the United Arab Emirates. The license, classified as SCA Category 5 (Arrangement and Advice), enhances Sky Links Capital’s ability to deliver financial services to individual traders, corporations, and institutional clients.

Sky Links Capital is a Dubai-headquartered multi-asset financial service firm led by former BDSwiss MENA CEO Daniel Taki Eddine.The SCA license allows the broker to expand its portfolio of financial services while reinforcing its reputation for transparency and compliance.

The company plans to leverage this regulatory endorsement to deliver enhanced trading conditions and broaden its client base. Takieddine praised the team’s dedication in securing the license and their shared vision of driving innovation in the financial markets.

Sky Links Capital offers a diverse portfolio of financial products, including equities, commodities, forex, cryptocurrencies, and exchange futures. The firm has distinguished itself with customer-centric services, advanced trading platforms, and strong risk management tools.

The broker recently partnered with Centroid Solutions to enhance the trading experience for clients while improving liquidity distribution across financial markets. The collaboration will enable Sky Links to provide its clients with enhanced trading capabilities, real-time analytics, and improved decision-making tools as part of the brokerage firm’s strategy to expand its global footprint.

The integration brings enhanced liquidity access, real-time risk management, and streamlined execution to Sky Links Capital’s trading platforms. Clients will benefit from optimized order execution, robust connectivity to leading liquidity providers, and a more comprehensive suite of trading tools.

Sky Links Capital Group, which is also licensed in FSC Mauritius (License No. GB24202837) and registered with the St.Vincent and Grenadines (Reg No. 3698), is a multi-asset brokerage firm offering exposure to a diverse range of assets including equities, bonds, commodities, and currencies.