The Dubai Financial Services Authority (DFSA) has censured Prabhakar Kamath, a former finance officer of a DFSA authorised firm for submitting an inaccurate financial report.
Kamath, in his capacity as finance officer, was responsible for submitting the monthly financial reports for an unnamed PIB Category 4 authorised firm (the Firm) to the DFSA, and its compliance with the DFSA’s Rules in relation to prudential requirements.
The DFSA said in a statement that in June 2015, Kamath provided the DFSA with the Firm’s monthly financial report for May 2015. The report was incorrect because it represented that the Firm continued to meet the DFSA’s prudential requirements. In fact, the Firm’s current account balance was significantly less than stated and, therefore, the Firm was in breach of the DFSA’s prudential requirements.
Before Kamath submitted the financial report to the DFSA, a member of the Firm’s senior management gave Mr Kamath inaccurate information about the Firm’s current account balance. However, Kamath failed to take steps to verify the balance of the Firm’s current account. In particular, he did not obtain and review relevant bank statements, the DFSA said.
“The DFSA considers that Mr Kamath breached the DFSA’s Principles for Authorised Individuals by failing to exercise sound judgment and diligence in performing the role of finance officer,” the statement read.
“Following the conclusion of the DFSA’s investigation, Mr Kamath accepted responsibility for his conduct and agreed to settle the matter at an early stage. While breaches of the DFSA’s Principles for Authorised Individuals have, in the past, resulted in a financial penalty, the DFSA concluded that a public censure is the most appropriate action given the circumstances of this matter. Mr Kamath also cooperated fully with the DFSA’s investigation.”
The DFSA’s Decision Notice can be found at https://www.dfsa.ae/en/What-We-Do/Enforcement#Regulatory-Actions