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30 Jun 2022, 09:43 am

DFSA takes action to protect the integrity of Islamic Finance

The Dubai Financial Services Authority (DFSA) withdrew the Authorised Individual status and imposed a restriction on Trevor Conway, a Senior Executive Officer at a DFSA-authorised firm (Firm), following an investigation into his conduct in relation to the Firm’s Commodity Murabaha Broking Desk (the Desk).

The Desk facilitated the purchase and supply of title to metal commodities (Warrants), sourced from suppliers for use by the Desk’s clients, who are mainly banks, to substantiate their Murabaha-based transactions with their respective customers.

The DFSA’s investigation found that for two years and nine months, the Desk made available Warrant numbers taken from Warrants they had previously used, thereby not providing its clients with current title to metal commodities. Mr Conway was aware that holding Warrants representing title to metal commodities was a precondition for entering into Murabaha transactions by its clients and that the Desk had not held any valid Warrants over the relevant period after losing its Warrant supplier. Mr Conway did not take steps to stop the Desk’s misleading practice. Further, Mr Conway had failed to stop the Desk from misrepresenting to a client that the Desk had a supplier providing Warrants when, in fact, the supplier had ceased to provide them.

As a result, the DFSA considers that Mr Conway engaged in conduct that demonstrates a lack of competence and therefore he is not fit and proper to perform any Licensed Function in connection with the provision of Financial Services in or from the DIFC.

The DFSA will continue to safeguard the integrity of Islamic finance and the DIFC. The due skill, care and competence of individuals working within the centre are paramount to achieve that objective.

The withdrawal of Authorised Individual status and restriction come into effect immediately. Mr Conway agreed to settle this matter and the action taken against him is final. A copy of the DFSA’s Decision Notice for Mr Conway can be found in the Enforcement Decision Notices section of the DFSA website.

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