The UAE Cabinet has approved a decision that aims to regulate cold calling in a meeting on 15 May and subsequently announced as part of a wider statement on new initiatives in the Emirates News Agency – WAM.
The statement said: “The Cabinet approved a decision that aims to regulate marketing calls (cold calling) to ensure consumer privacy and comfort.
“This includes setting specific guidelines for telemarketing practices, establishing compliance obligations for companies, and setting penalties for violations. The resolution also facilitates effective coordination between federal and local authorities to enforce these regulations optimally.”
In early reaction Nigel Sillitoe, CEO of Insight Discovery and a long standing campaigner on this issue said on LinkedIn; “Whilst details such the fines haven’t yet been revealed this development is a step in the right direction as cold calling has been on the rise over recent years”
While Yazmin Boden, Partner of GSB Wealth, also gave her thoughts on the decision.
She said: “GSB would welcome infinitely stricter legislation around cold calling in the UAE. Ideally, the UAE would consider a complete ban on financial services cold calling, similar to that of the UK’s HM Treasury Consultation published in August 2023.
“From our perspective, GSB has never and will never tolerate the practice of cold calling. Where an individual is looking to obtain financial advice, the selection process should be made through careful personal research and referrals from experienced individuals. The necessary research can be very easy.
“People should not be making financial decisions off the back of a ‘charming’ cold call, which promises exceptional returns and immediate convenience. A bad financial decision, once made, is incredibly hard to undo. However, it is easily preventable with the necessary due diligence.
She further said: “I would first recommend that expats in the UAE only select advisers that are located within the DIFC, which follows UK common law and financial services regulation. UAE residents should also only work with those recognised by the Chartered Insurance Institute (CII), the Chartered Institute of Securities and Investments (CISI), or the Dubai Financial Services Authority (DFSA).
“This will ensure that your chosen adviser carries the necessary qualifications and experience to provide accurate, regulated and fair advice. It is important that investors check the direct website of regulatory bodies and do not rely on statements made on LinkedIn and company websites. If an opportunity sounds too good to be true, it probably is.”
