A leading official at Morgan Gatsby Limited (MGL) has been fined $87,500 by the Dubai Financial Services Authority (DFSA) for "multiple serious breaches" of its legislation.
The Dubai Financial Services Authority (DFSA) fined Ajay Arora $87,500 (approximately Dh321,000), prohibited him from holding office or being an employee of a regulated DIFC firm, and restricted him from performing any functions in connection with the provision of Financial Services in or from the Dubai International Financial Centre (DIFC).
As Senior Executive Officer (SEO), he had ultimate responsibility for the day-to-day management, supervision and control of MGL's financial services business.
The DFSA will take strong action against individuals who breach the DFSA's legislation, and will pursue stronger action yet where misconduct continues despite warnings"
However, Arora "executed client transactions without authorisation and engaged in misleading and deceptive conduct towards those clients and the DFSA", the statement added.
He allegedly provided false or misleading information about effected transactions to two clients. One of the transactions was carried out despite the client having given explicit instructions to the contrary, the DFSA said.
He "contravened the DFSA's principles for authorised individuals by failing to observe high standards of integrity and fair dealing", it added.
The DFSA found that Arora and MGL continued to engage in misconduct, despite concerns about rule breaches being brought to his attention on numerous occasions from 2016 onward by both the DFSA and MGL's compliance function. Despite these repeated warnings, he did not take sufficient action to stop the misconduct or to improve the firm's systems and controls.
Bryan Stirewalt, chief executive of the DFSA, said: "We hold authorised individuals, particularly SEOs, to the highest standards of integrity in discharging their responsibilities for the management, supervision and control of an authorised firm.
"Mr Arora did not meet these standards, even after he was repeatedly notified of compliance concerns regarding MGL's activities.
"The DFSA will take strong action against individuals who breach the DFSA's legislation, and will pursue stronger action yet where misconduct continues despite warnings."
Following a request by Arora to reduce the fine on the grounds of financial hardship, and with an agreement to settle early, the amount was dropped down from $187,500.
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