“Finfluencer” License in the UAE: Regulating Digital Financial Content Under a Legal Framework

The UAE Securities and Commodities Authority (SCA) has launched the “Finfluencer” license, aimed at regulating and enhancing the quality of digital financial content, while safeguarding investors from misleading or fraudulent information disseminated through online platforms.

1. Definition and Regulatory Significance

A Finfluencer is a natural person licensed by the SCA to provide financial recommendations or analysis through traditional or digital channels, including social media, forums, blogs, or webinars. This includes expressing opinions on financial or virtual products and assets within the UAE.

The importance of this license lies in its role in regulating published content and ensuring its integrity, thereby reinforcing public trust in the financial market and minimizing the risk of misinformation.

2. Legal and Regulatory Framework

This licensing initiative is part of a broader drive to foster digital economy growth and financial innovation. Notably, registration and renewal fees are waived for the first three years. To obtain the license, applicants must register with the SCA and adhere to the applicable legal and regulatory requirements.

3. Licensing Conditions and Requirements

Eligibility Criteria:

• The applicant must reside in the UAE.

• Employees of licensed financial institutions are not eligible.

Required Documents:

• Curriculum Vitae (CV)

• Emirates ID and passport (residency visa for expatriates)

• Family Book (for UAE nationals)

• Academic and professional certificates (if available)

• Work experience certificates

• Credit report from Al Etihad Credit Bureau

• Certificate of Good Conduct

4. Strategic Objectives

• Protect investors from unsubstantiated or reckless financial advice.

• Improve the credibility and quality of financial content.

• Encourage innovation within a regulated financial environment.

• Strengthen the UAE’s position as a regional digital financial hub.

5. Expected Impact on the Financial Market

• Reduce legal risks and unreliable recommendations.

• Improve financial literacy among individuals.

• Boost trust in digital financial platforms.

6. Legal Responsibilities and Risks

• Providing financial recommendations without a license is a clear violation and subjects the individual to legal liability.

• Finfluencers must comply with related laws, including those on cybercrime and anti-money laundering.

• They are also required to disclose any commercial interests related to their recommendations.

• The SCA holds regulatory oversight authority and may impose disciplinary actions, including license suspension or revocation.