Human Resources Requirements for SCA Licensing in the UAE

When applying for a license from the Securities and Commodities Authority (SCA) — including the Category 5 License — the qualifications and structure of your human resources are one of the most critical factors for approval.

However, the specific requirements vary depending on your chosen business activities and business model. A firm providing financial consultancy will need a different HR setup compared to a company focused on promoting financial products or introducing clients to licensed brokers.

Because of this, the number of employees, the roles required, and their qualifications are determined based on your service scope and operational structure.

1. Key Roles Commonly Required by the SCA

While exact staffing needs differ depending on your activity, the SCA typically expects applicants to appoint qualified professionals in the following critical roles:

• Compliance Officer (Mandatory) – Ensures your company fully complies with SCA regulations, AML/KYC obligations, and reporting requirements.
• Licensed Financial Consultants / Advisors – Required for firms providing financial consultancy or promotional services to guide clients on investment strategies and financial products.
• Financial Analyst – Evaluates financial statements, prepares reports, and supports decision-making based on accurate financial data — crucial for regulatory reporting.
• Risk Manager – Implements and maintains risk management frameworks, ensuring your company identifies and mitigates financial and operational risks effectively.
• Promotion Director – Oversees all marketing and promotion strategies for financial products, ensuring that all communications comply with SCA rules and consumer protection guidelines.
• Category Manager – Required when multiple financial products or services are offered. The Category Manager coordinates with internal teams, manages product approvals, and ensures all activities remain within the authorized scope under the SCA license.
• Senior Management & Directors – Provide strategic oversight and ensure the business operates within approved regulatory parameters.

2. SCA-Required Exams for Key Personnel

The SCA requires that certain individuals — including compliance officers, financial consultants, category managers, and senior managers — pass special examinations before they can receive final approval.

These exams assess:

• Understanding of UAE financial regulations
• Risk, compliance, and reporting obligations
• Technical expertise for the licensed activities

This ensures that licensed firms are operated by qualified professionals with the knowledge and competency to manage regulated financial services effectively.

3. Foreign Firms & Local Staffing Expectations

For international companies applying for an SCA license, the requirements are often stricter:

• Foreign firms must demonstrate they are properly regulated in their home jurisdiction by a recognized authority.
• The SCA may require key roles, such as the Compliance Officer, Category Manager, Promotion Director, and Licensed Advisors, to be based locally in the UAE.
• In certain cases, the SCA may request confirmation of oversight from the applicant’s home regulator and additional documentation on operational readiness.

4. Why Human Resources Are Key to SCA Approval

Even if your documents, capital, and operational setup are in order, your application may be delayed or rejected if your team does not meet SCA standards. The regulator carefully evaluates:

• The qualifications, certifications, and experience of your personnel
• Your organizational structure and reporting lines
• Your ability to comply with risk, promotion, and reporting obligations

Having the right professionals in the right roles significantly increases your chances of a smooth approval process.

Alliance Advisers – Your Partner for SCA Licensing

At Alliance Advisers, we help clients identify, prepare, and secure the right human resources to meet the SCA’s licensing standards based on their business activity and license type.

Our support includes:

• Assessing mandatory HR requirements for your business model
• Guiding on the selection and approval of qualified personnel
• Preparing candidates for SCA exams and role approvals
• Ensuring your HR structure meets all regulatory expectations before submission

With our expertise and direct engagement with regulators, we help you avoid delays and navigate the SCA licensing process seamlessly.

📩 Contact Alliance Advisers today to discuss the human resources requirements for your SCA licensing application and receive expert guidance tailored to your business: https://allianceadvisers.com/contact-us

Hashtags

#AllianceAdvisers #SCA #SCALicense #Category5License #FinancialLicensing #FinancialConsultancyUAE #BrokerageLicenseUAE #InvestmentLicensing #FinancialAdvisory #FintechUAE #BusinessSetupUAE #CorporateServices #UAERegulations #Compliance #RiskManagement #UAEInvestments