UAE's financial-influencers must register 'proactively' for new license, says SCA

Dubai: All UAE social and digital media influencers talking about financial matters and investments need to register at the earliest for the new licenses issued by the regulator Securities & Commodities Authority (SCA).

It was last week that UAE announced the new licensing requirements for financial influencers using YouTube, TikTok and other such channels. Those on other media channels too must follow the procedure.

By registering, they will obtain officially authorized 'finfluencer' status.

"This designation requires full compliance with regulatory standards to ensure content transparency and safeguard the rights of market participants," said the SCA.

What audiences need to keep in mind

Some of the finfluencers have won sizable audiences for what they have to say about new IPOs, investment and market trends.

According to the SCA, going forward, these viewers must:

* Verify a finfluencer’s authorization status before engaging with their content or acting on their recommendations.

* Report any instances of unauthorized activities by any of these finfluencers to the SCA via its official website or call center. "Interactions with unauthorized individuals or entities may pose significant financial risks to investors," said the SCA.

According to Waleed Saeed Al Awadhi, CEO of SCA, "Regulating finfluencers activity has become imperative.

"Finfluencers play a pivotal role in shaping investor decisions. Official authorization by the SCA underscores their commitment to professional standards and reinforces public trust in the integrity of financial content.”

* A licensed finfluencer status allows these individuals to share investment analyses and offer recommendations related to approved financial instruments or entities through digital or traditional media - as long as they remain in strict compliance with the SCA’s standards.

* The SCA is granting a three-year waiver on registration and renewal fees, along with access to legal advisory services.