The Securities and Commodities Authority of UAE makes it mandatory for all brokerage firms operating within the framework of its guidelines to appoint a compliance auditor or an internal regulator.
The compliance auditor undergoes a stringent selection process and conducts his duties on behalf of the SCA and is paid by the brokerage firm. One compliance auditor cannot be the compliance auditor of any other brokerage firm – this is thus an exclusive appointment.
The auditor is bound in equal fiduciary responsibility with the management of the firm and his responsibilities include weekly reporting, monthly reporting and situational reporting.
He is entrusted with the task of ensuring that the firms follow all the guidelines prescribed by the relevant laws and regulations.
Investor protection, anti-money laundering, prevention of insider trading, capital adequacy and internal control are the key areas that are monitored, besides several other areas.
The Managing Partner of Verico Auditing is performing the function of a compliance auditor since 2007.