UAE Law and Practice Contributed by: Stefan Mrozinski, Gabrielle Margerison (nee Lowe) and Arnold Krutilins, White & Case LLP
Guidance on best execution provided by the DFSA states that when determining best execu - tion, regard should be had for direct and indirect costs, the relevant order type and the size, set - tlement arrangements and timing of that client’s order that could affect decisions on when, where and how to trade. Requirements to achieve best execution prices in favour of clients are also set out in the SCA Rulebook.
SMEs as the Consumer Protection Regulations, with a limited number of differences. 4.2 Underwriting Processes The underwriting process adopted by an online lender will depend on its business and internal risk management framework. 4.3 Sources of Funds for Fiat Currency Loans The access to sources of funds for loans will depend on the nature and maturity of the online lender. At the early stages of business, online lenders may seek seed investment, for exam - ple, from venture capital firms. Separately, the crowdfunding market in the UAE has experi - enced significant growth in recent years. Lenders may also seek to fundraise through peer-to-peer lending. In expansion stages, and where an online lender has established a market presence, it may seek a fresh capital injection through a secured or unsecured debt facility. Depending on the nature of the online lend - er, challenger banks may also use consumer deposits to fund loans. At all stages, sovereign wealth is an important source of funding within the region. 4.4 Syndication of Fiat Currency Loans The authors are not aware of any syndications for online loans. These loans are typically small, short-term checkout loans which do not require syndication.
4. Online Lenders 4.1 Differences in the Business or Regulation of Fiat Currency Loans Provided to Different Entities
In “onshore UAE” , the CBUAE has issued regu - lations setting out the protections that apply with respect to the provision of finance to consumers and small to medium-sized enterprises (SMEs). However, the authors are not aware of differ - ences in the business or regulation of loans to entities, including small businesses, etc. The CBUAE’s Consumer Protection Regulations provide that financing to individuals must be pro - vided in a responsible manner, to prevent over- indebtedness and support economic stability. In order to achieve this, the Consumer Protection Regulations set out various measures that must be implemented, including: • ensuring credible and independent informa - tion regarding the financial situation of the consumer has been obtained; • not providing excessive credit; and • issuing credit on the basis of the consumer’s consent. The SME Market Conduct Regulation sets out materially the same requirements in respect of
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