CISI Updated UAE-Financial-Rules-and-Regulations Exam Questions and Answers by cyrus

The Corporate Governance provisions covered by the CISI UAE Financial Rules and Regulations require listed companies to establish controls over transactions undertaken by Board members, employees and other persons who may possess unpublished inside information. The company's Board must issue written rules governing transactions by these insiders in securities issued by the company itself, its parent company, subsidiaries and related companies . A special and comprehensive Insiders Register must then be maintained, including permanent and temporary insiders who have access to internal information before publication. The organisation responsible for the register must monitor insiders' transactions, maintain their disclosures, provide updated insider lists to the SCA and market, and submit the register to the Authority when requested. Limiting the regime to securities issued solely by the company would leave material connected-company dealings outside the monitoring framework. Similarly, options B and C improperly omit either subsidiaries or related companies. The CISI text expressly covers all four categories, making option D the complete and correct answer.

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For Silver Futures contracts on the Dubai Gold & Commodities Exchange (DGEX), the contract size is 1,000 troy ounces of refined silver, with a prescribed margin of 5%. The margin requirement ensures that traders have sufficient collateral to cover potential price fluctuations in the market. The 5% margin provides a balance between allowing for liquidity in the market and managing the risks associated with futures trading. This is a standard margin level designed to protect both market participants and the exchange from extreme volatility or defaults.

In the Dubai Financial Market (DFM) and other UAE exchanges, if an order is not fully executed during a trading session, the remaining unexecuted volume remains on the trading system at the last executed price, subject to the order’s validity instructions (e.g., good-till-cancelled). This approach allows the unfilled portion to remain active in the market for potential matching with future opposing orders, supporting liquidity and order continuity. Orders are not automatically cancelled or deferred to the next session unless specified. This process ensures transparency and orderly execution consistent with regulatory trading rules.

The Dubai Financial Market (DFM) Professional Code of Conduct mandates that brokerage firms perform thorough customer due diligence to confirm client identities. For natural persons, this includes obtaining detailed personal information such as profession, exact residential address, PO Box, and phone number. This comprehensive identification requirement supports anti-money laundering (AML) and know-your-customer (KYC) policies by enabling firms to verify clients accurately and assess their risk profiles effectively. Commercial registration details and legal entity information apply to corporate clients, not individuals. Collecting detailed contact and occupational data also facilitates ongoing monitoring and communication, fulfilling regulatory obligations to maintain transparent client records.