DIFC financial adviser gets 6-year ban
Dubai, October 7, 2013
Dubai Financial Services Authority (DFSA) has restricted Jaime Corona, a former financial adviser of a Dubai International Financial Centre (DIFC)-authorised firm, for unethical conduct when advising clients about the value of their investment portfolios.
DFSA is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai.
The ban prevents Corona from performing any functions in connection with the provision of financial services at the DIFC for a period of six years, said a DFSA statement.
The regulator said it had to take action because Corona was engaged in misleading and deceptive conduct, in relation to investments, by providing two Dubai-based clients falsified portfolio account statements which indicated that the value of their portfolios were significantly greater than their actual value.
DFSA said that the conduct of Corona came to their attention only after he left the UAE. After careful scrutiny the authority found that Corona was unfit to provide financial services in the DIFC.
During the course of the investigation and decision making, Corona failed to respond to any DFSA communications, it stated.
Commenting on the ban, CEO Ian Johnston said: “People who act unethically cannot avoid the DFSA’s scrutiny by leaving the jurisdiction or failing to communicate with the regulator. The DFSA may impose sanctions on those who contravene its laws regardless of their location."
"Furthermore, the DFSA is taking an increasing interest in the conduct of financial advisers to improve the quality of advice provided to consumers," stated the top official.
Calling upon financial advisers to make accurate disclosures to consumers, Johnston said, "If a consumer is concerned about the validity of advice provided then they should inform their financial services regulator of their concerns."
DFSA’s regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.-TradeArabia News Service