The Dubai Financial Services Authority (DFSA) has withdrawn the licence of Siraj Capital (Dubai) Limited to provide financial services in the Dubai International Financial Centre (DIFC).

The DFSA took this action because Siraj contravened the laws and rules administered by the DFSA, a statement said.

The statement said the company failed to:
• Maintain adequate capital resources during the period from October 1, 2010 to the date of the withdrawal of Licence;
• Have adequate systems and controls to enable it to determine and monitor its capital requirements;
• Advise the DFSA immediately in regard to the occurrence of an action which would result in material changes in its capital adequacy or solvency.
• Disclose a matter which reasonably  tends to show a breach or likely breach of the DFSA laws or rules;
• Ensure that its affairs were managed effectively and responsibly by its senior management; and
• Have adequate systems and controls to ensure, as far as is reasonably practical, that it complied with legislation applicable in the DIFC.

“As a result of the above contraventions, the DFSA found Siraj was not fit and proper to remain as an authorised firm in the DIFC and withdrew Siraj’s licence.  The DFSA’s exercise of its powers in this regard was in the pursuit of the DFSA’s regulatory objective of preventing, detecting and restraining conduct that causes or may cause damage to the reputation of the DIFC or the financial services industry in the DIFC,” the statement said.

The DFSA withdrew the licence on September 18, 2011 and no client of the firm suffered a loss as a result of the firm’s contraventions, it said.
 
Paul M Koster, chief executive of the DFSA, said: “Financial Services Firms operating in the DIFC are required to maintain adequate capital resources to satisfy day-to-day claims on the business and to meet future contingencies. The DFSA’s capital requirement provides investors and customers with the confidence that institutions will be able to meet claims as and when they fall due.   The DFSA will take appropriate action where firms fail to maintain adequate capital resources.” – TradeArabia News Service