6.1 Suitability & client data
▼Suitability report — 3-year full review syllabus 6.1
The retail client's full suitability report must be reviewed and updated at least every 3 years — supplemented by interim event-driven updates (material life change, mandate switch, jurisdiction change).
Client data accuracy — annual undertaking syllabus 6.1
Clients must confirm (undertake) the accuracy of their data annually. One-off undertakings at opening get stale fast — the annual touchpoint refreshes the firm's confidence.
6.2 Statements & confirmations
▼The 6 / 1 / 12 statement trio syllabus 6.2
Order execution confirmation — next business day syllabus 6.2
After executing a client order, the licensed body must send the execution confirmation by the next business day at the latest. Real-time is best practice; deferring to the next periodic statement loses the audit-trail purpose.
6.3 Loss limits
▼Loss-limit breach — end of business day syllabus 6.3
When a client portfolio breaches an agreed loss limit, the licensed body must notify the client by end of the same business day. Balances intra-day move tolerance with the client's right to know before next-day trading.
6.4 Promotion & introducers
▼Promotional material — content rules syllabus 6.4
- Past performance disclosure with appropriate warnings
- Major shareholders ≥ 10% must be disclosed
- Withdrawn promotion: SCA must be notified
- Promoter cannot also act as agent in the same transaction
Foreign fund — private offering minimums (recap) syllabus 6.4
Same as Ch 3:
- Onshore UAE: AED 500,000 minimum subscription
- UAE free-zone resident: AED 1,000,000
Introducer — 15-day decision syllabus 6.4
Introducers refer clients to a licensed body for a fee. SCA decision on an introducer application: within 15 days. Light-touch regulatory profile compared to full licensing.
6.5 SPACs
▼SPAC — definition syllabus 6.5
A Special Purpose Acquisition Company (SPAC) raises public capital with the specific aim of merging with or acquiring a private target. Investor funds sit in escrow until the deal closes — or are returned if no deal completes within the deadline.
SPAC — every threshold syllabus 6.5
| Topic | Threshold |
|---|---|
| Initial issued capital | ≥ AED 100,000 |
| Post-IPO issued capital | ≥ AED 100 million |
| Sponsor share range | 3% – 20% |
| Subscription window | 5 – 30 business days |
| Subscription extension cap | 10 business days |
| Escrow — % of proceeds | ≥ 90% within 2 BD |
| Business combination deadline | 2 years (extendable to 3) |
| Merger target valuation | ≥ 80% of deposited funds |
| Merger shareholder approval | ≥ 75% of represented shares |
| Failed combination → liquidation | Within 30 business days |
6.6 Cheat sheet — all the numbers
▼Every Ch 6 threshold in one place exam day
| Topic | Threshold |
|---|---|
| Suitability — full review cycle | Every 3 years |
| Client data — accuracy undertaking | Annual |
| Periodic statements — retail | Every 6 months |
| Periodic statements — leveraged | Monthly |
| Periodic statements — deal-by-deal | Every 12 months |
| Order execution confirmation | By next business day |
| Loss-limit breach notification | End of business day |
| Promoter notification — SCA stop | 10 days |
| Fund promotion — SCA approval | 15 days |
| Promo material — major shareholder disclosure | ≥ 10% |
| Foreign fund — onshore subscription | ≥ AED 500,000 |
| Foreign fund — free-zone subscription | ≥ AED 1,000,000 |
| Introducer — SCA decision | 15 days |
| SPAC — initial capital | ≥ AED 100,000 |
| SPAC — post-IPO capital | ≥ AED 100 million |
| SPAC — sponsor share | 3% – 20% |
| SPAC — subscription window | 5 – 30 BD (+10 BD extension) |
| SPAC — escrow | ≥ 90% within 2 BD |
| SPAC — combination deadline | 2 yrs (extendable to 3) |
| SPAC — target valuation | ≥ 80% of deposited funds |
| SPAC — approval | ≥ 75% shareholder votes |
The "easy chapter" still has 10 marks
- 🎯 68 calibrated Ch 6 questions in the bank.
- 🔄 SPAC numbers — drill them as a single block; they often cluster on the exam.