SCA CAT-5 License

Promoting Offshore Forex Services in the UAE with an SCA Category 5 License

A mainland UAE company can legally promote the services of offshore regulated Forex brokers under a Category 5 license issued by the Securities and Commodities Authority (SCA), provided the following conditions and requirements are met:

Mainland Company Requirements

• Legal Form: The company must be registered as a mainland LLC or Sole Establishment (with a local service agent or Emirati partner, as applicable).

• Licensed Activities:

  • Promotion of Financial Products

  • Financial Consultancy

  • Marketing of Foreign Financial Instruments

  These activities must be explicitly approved and licensed under SCA supervision, even if the initial license is obtained through the Department of Economic Development (DED).

• Physical Presence: A physical office in the UAE mainland is mandatory.

• Qualified Personnel: The company must appoint a compliance officer and, in some cases, a qualified financial advisor, based on the scope of services.

📋 Category 5 License Conditions

• Target Audience: Marketing and promotional activities are restricted to Professional Investors and Market Counterparties only — not the general public.

• Private Placement Basis: All promotions must be made privately, not through mass advertising or public marketing channels.

• Prior Product Disclosure: The company must inform the SCA in advance of each offshore broker or product it intends to promote. Full disclosure and documentation may be required.

• Foreign Funds: If promoting foreign investment funds, these must be registered with the SCA beforehand.

• Ongoing Compliance: All communications, marketing materials, and client interactions must comply with SCA conduct rules, including full transparency and non-misleading practices.

• Record Keeping: Detailed records of promotional activities, client communications, and regulatory submissions must be maintained.