DFSA penalises former executive of DIFC firm
Dubai, October 1, 2013
The Dubai Financial Services Authority (DFSA) has slammed a penalty of Dh27,525 ($7,500) on a former senior executive officer of a Dubai International Financial Centre (DIFC) authorised firm for issuing a letter containing false information.
In April 2009, Tareck Fouad Farah issued a bank reference letter on behalf of a client containing false information that was addressed to another financial institution.
The bank reference letter stated that the client held a portfolio of securities valued at approximately Dh18.35 million. The actual value of the client’s portfolio was only approximately Dh697,000.
By engaging in this conduct, the DFSA was concerned that Farah had breached DFSA Principles requiring senior executive officers to perform their functions with integrity, skill, care and diligence.
Farah acknowledged the DFSA’s concerns and made a settlement offer in the form of an Enforceable Undertaking (EU), in which he agreed to pay the financial penalty.
Farah co-operated fully with the DFSA’s investigation and no person suffered any financial loss as a result of the conduct. The Authorised Firm brought the matter to the DFSA’s attention in December 2012.
Stephen Glynn, head of Enforcement at the DFSA said: “The DFSA expects senior executive officers (SEOs) to perform their functions to the high standards required of them and as set out in the DFSA’s laws and rules.”
“SEOs of authorised firms occupy positions of trust and their stakeholders are entitled to rely upon the integrity of their statements, whether they be written or oral. In this instance the written statement was prepared for use by another financial institution and the DFSA was concerned the letter may have been relied upon to extend credit or for some other purpose.”
“SEOs should expect the DFSA to take action when they fail to meet standards required of them under the laws and rules administered by the DFSA,” he added.
The 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. – TradeArabia News Service