UAE Capital Markets / Securities LawCabinet Resolution No.(113) of 2022 on Publication of Violations Related to Legislation of the SCA and Licensed Markets

Article (1) Definitions Upon applying the provisions of this Resolution, the following words and expressions shall bear the following meanings assigned thereto respectively, unless the context requires otherwise: State : The United Arab Emirates Authority : Securities and Commodities Authority Board : Board of Directors of the Authority Market : The securities or commodities market licensed in the State in accordance with the provisions of Federal Law No. (4) of 2000 concerning the Emirates Securities and Commodities Authority and Market, referred to hereinabove. Person : The natural or legal person committing the violation.

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Cabinet Resolution of 2022 on Publication of Violations Related to Legislations of the SCA and Licensed Market 2

Article (4) Publication Approval Validity 1. The Board or any entity or body authorized by it may publish the violations if they meet the conditions stipulated in Article (5) of this resolution, provided that the publication decision is approved by the Chairman of the Board or whomsoever he authorizes. 2. Having obtained the approval of the Board, the Board of Directors of the market concerned may publish the violations committed in breach of the operational and executive rules applicable by it, the names of their perpetrators, and the administrative penalty imposed in respect thereof, provided that the resolution of the Board of

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Cabinet Resolution of 2022 on Publication of Violations Related to Legislations of the SCA and Licensed Market 3 Directors of the market concerned is approved by its chairman.

Article (5) Controls for Publishing the Violations The following controls shall be observed upon publishing the violation: 1. The administrative penalty applicable to the violation shall be any of the following penalties: a. financial fine exceeding (50) fifty thousand dirhams; b. Temporary suspension of business; c. Temporary suspension of trading; d. Revocation of license or Delicensing of the entities licensed by the Authority; e. Suspending or revoking the accreditation of employees of entities licensed by the Authority; f. Suspension or cancellation of the securities listed on the market. 2. The expiration of the time limit prescribed for appealing the resolution imposing the administrative penalty without appealing it, or upon the issuance of a resolution to dismiss the appeal in accordance with the legislation regulating the work of the Authority; 3. After completing the procedures of referring the person to the Public Prosecution in the cases in which the Authority decides referral to the Public Prosecution.

Article (6) Content of Publication 1. The publication stipulated in Article (7) of this resolution shall specify the violation committed, the violator, the nature of the administrative penalty imposed thereon, and the date of the penalty decision. 2. Notwithstanding Clause (1) of this Article, the publication may only include a description of the violation committed and the consequential administrative penalty without mentioning the name of the violator in any of the following cases: a. If the violator is referred to the Public Prosecution;

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Cabinet Resolution of 2022 on Publication of Violations Related to Legislations of the SCA and Licensed Market 4 b. If the violation is committed for the first time, unless the penalty resulting from the violation is revocation of the license, or where the violation would affect the stability and safety of transactions that are subject to the regulation, control and supervision of the Authority, in accordance with the Board's opinion; c. Any other case on which a resolution is issued by the Board for the sake of the public interest.

Article (7) Publication Mechanism 1. The publication shall be carried out through the website of the Authority and the market concerned, in addition to any of the following means: a. A daily newspaper published and distributed in the State; b. The social media platforms; c. Financial Markets' website; d. Any other method approved by the Board; 2. The violation shall be published on the websites of both the Authority and the relevant market for a period of not less than (30) thirty days starting from the date of publication, and such a period may be extended in the event that the violation is not corrected or in accordance with the nature and seriousness of the violation committed, provided that a resolution of extension is issued by the Board or whomsoever it delegates or the Board of Directors of the Market concerned.