The Dubai Financial Services Authority (DFSA) has fined two companies and two individuals a total of more than AED5.7m for breach of legislation, including unauthorised financial services activities.

In a statement on 22 March, it said the two firms were Adenium Energy Capital Ltd (Adenium Cayman), a Cayman Islands registered company now in liquidation, and Adenium Energy Capital Advisors Ltd (AECAL), a DFSA authorised firm also now in liquidation.

The two individuals are Wassef El Sawaf, the former CEO of Adenium Cayman and the former Senior Executive Officer of AECAL, and Youssef Fouad Chaker, the former Chief Legal Officer of Adenium Cayman and a former Licensed Director of AECAL.

Adenium Cayman and AECAL belong to the Adenium Group, which invested in and managed solar energy projects in a number of countries.

The DFSA found that Adenium Cayman engaged in unauthorised financial services activities, including illegally marketing unregulated Collective Investment Funds.

It also found that AECAL was knowingly involved in Adenium Cayman's breaches and itself breached a number of DFSA rules relating to customer on-boarding, client classification, capital requirements and systems and controls.

El Sawaf and Chaker were knowingly involved in Adenium Cayman's and AECAL's breaches, and breached a number of DFSA's laws, the authority added.

The DFSA imposed the following financial penalties: AED4,613,483 on Adenium Cayman; AED354,337 on AECAL; AED483,301 on El Sawaf, and AED271,471 on Chaker.

The fine on AECAL was reduced because the company agreed to settle the matter. Had that not been the case, the DFSA would have imposed a fine of AED506,199.

The fine on El Sawaf was reduced by 20% as he cooperated with the authorities, and another 30% was reduced later after he agreed to settle the matter. The fine on him initially would have been AED863,037.

The fine on Chaker was also reduced by 20% initially and 30% later on for the same reasons. Initially, he was to have been fined AED484,770.

F. Christopher Calabia, chief executive of the DFSA, said: "The DFSA will not tolerate DIFC based corporate groups that have only one entity regulated by the DFSA, but create the impression that all of the group's financial services are regulated by the DFSA and onboard clients with another group entity that is not subject to DFSA regulation."