As part of its efforts to ensure corporate compliance with the provisions of a resolution announced by the Cabinet to regulate marketing through phone calls and to combat practices in breach of this resolution, the Securities and Commodities Authority (SCA) has called on customers receiving phone calls marketing services related to securities and commodities trading in the UAE to report those made in violation of this resolution.
It said, in a circular posted on its website, that marketing regulated services and products through phone calls would be considered a violation if made by companies that had not obtained prior approval from it to engage in phone marketing.
It indicated that the public can check whether the company making telemarketing calls is licensed by the SCA by visiting its website (www.sca.gov.ae). It further said that the public may report violating companies using the ‘Reporting Capital Market Violations’ service offered on the website.
The SCA explained that corporate use of any marketing means that creates unnecessary pressure on customers to persuade them to purchase a service or product or mislead them about a service or product is considered a violating practice and so is making marketing phone calls during restricted hours (from 9:00 a.m. to 6:00 p.m.).
Failure to use local phone numbers issued by authorized telecommunications companies in the UAE and registered under the commercial license of the company making the call is considered a violation and so is calling customers whose numbers are listed on the Do Not Call Registry (DNCR).
The SCA previously issued a circular to the companies concerned about phone calls marketing services related to securities and commodities trading in the UAE pursuant to Cabinet Resolution No. 56 of 2024 Regulating Telemarketing.
The SCA explained that according to the resolution, it is responsible for regulating phone calls marketing financial services subject to its oversight. It said that companies should be in full compliance with the Cabinet resolution and should obtain its prior approval before conducting phone calls marketing services related to securities and commodities trading in the UAE while also complying with its marketing regulations.
Licensed companies must direct the entities they enter into contracts with to provide telemarketing services on their behalf (third parties licensed by the SCA) to fully comply with the Cabinet resolution and all other relevant regulations.
The SCA said that it was confident that the companies concerned would cooperate to achieve the desired objectives. It indicated that the Cabinet will impose penalties on violating companies and natural persons under Cabinet Resolution No. 57 of 2024 on the Administrative Violations and Penalties for Acts Violating Telemarketing Regulations.
