The Dubai Financial Services Authority (DFSA) announced today, that an individual (the Individual), a former private banker, will pay a financial penalty of AED73,400 (USD$20,000) and be restricted, for a period of six years, from performing any functions in, or in connection with, the provision of a financial service in the Dubai International Financial Centre (DIFC).
The announcement follows the conclusion of a DFSA investigation into the conduct of the Individual when he was a former employee of a DFSA Authorised Firm.
Between July 2012 and January 2013, the Individual executed two transactions, valued at AED12,478,000 (USD$3.4 million) and AED18,350,000 (USD$5 million) respectively, on behalf of a client without his consent.
Furthermore, the Individual forged the client's signature on a number of documents and sent fraudulent letters and account statements, containing false and misleading information about his investments. The client did not suffer any financial loss as a consequence of the Individual’s fraudulent conduct and unauthorised investments.
The Individual co-operated fully with the DFSA's investigation and acknowledged forging the client's signature, executing unauthorised investments and providing the client with falsified documents.
The Individual agreed to settle the DFSA's concerns by making a settlement offer, in the form of an Enforceable Undertaking (EU), to comply with the sanctions.
The EU requires the Individual to comply with all of its conditions. Should the Individual fail to comply with any condition of the EU then the DFSA may seek to enforce that condition in the DIFC Courts.
Mr Ian Johnston, Chief Executive of the DFSA said: "Consumers who rely on the advice and services of private bankers are entitled to expect high standards of conduct from them. The DFSA expects private bankers who provide services in or from the DIFC to act ethically and with integrity. Bankers who do not meet these minimum standards will have to answer to the DFSA."
Mr Johnston reinforced his message that, "the DFSA will continue to uphold high standards of probity and will not permit any individual, who does not meet its standards, to provide financial services in the DIFC."
A copy of the EU can be found in the Public Register of the DFSA website under Regulatory Actions.
For better web experience, please use the website in portrait mode