Brokers face strict new account rules

The Emirates Securities and Commodities Authority (ESCA) has announced its criteria for separating brokerage firms’ bank accounts from those of their clients, Gulf News said today. ESCA’s board of directors met yesterday to approve the necessary measures and to authorise the CEO to form investigative committees in relation to any violations of the rules.An official said “ESCA will also set the financial criteria for licensing brokerage firms, and will carry out a comprehensive study about margin trading to recommend the best practices possible in coordination with the stock markets.”

The board, led by ESCA chairman and UAE minister of economy Shaikha Lubna Al Qasimi said brokerage firms would have a grace period –until the end of June - for raising the paid-up capital as well as the specified bank guarantees. Source