vDubai, UAE — The Dubai Financial Services Authority (DFSA) has imposed a fine of $100,000 (Dh367,000) on Vedas International Marketing Management for conducting unauthorised and deceptive financial promotions linked to the Multibank Group. The fine comes after the DFSA discovered that Vedas Marketing had misled individuals within the Dubai International Financial Centre (DIFC) by falsely representing that certain entities in the Multibank Group were regulated by the DFSA, when in fact, none of these entities were.
In a statement issued on Tuesday, the DFSA reaffirmed its commitment to maintaining the integrity and reputation of the DIFC, emphasising that it would not hesitate to take action against firms engaging in misleading conduct or misrepresenting their regulatory status. “Upholding the integrity and reputation of the DIFC is one of our highest priorities. The DFSA will not hesitate to act against firms that mislead the public about their regulatory status or location, taking necessary steps to deter such conduct,” said Ian Johnston, Chief Executive of the DFSA.
Multibank Group Not Alleged of Wrongdoing
It is important to note that the DFSA’s decision does not include any allegations of wrongdoing against the Multibank Group itself. The Multibank Group offers trading platforms but was not found to have engaged in any misconduct in connection with the promotion carried out by Vedas Marketing.
Appeal and Tribunal Ruling
Vedas Marketing initially challenged the DFSA’s findings, referring the matter to the Financial Markets Tribunal (FMT) on June 2, 2024. However, on July 22, 2024, the FMT ruled that Vedas Marketing’s appeal should be struck out, citing the company’s failure to pay the required filing fee for the referral.
Growth in DFSA Authorisations
In other news, the DFSA reported that it authorised 61 new firms in the first half of 2024, a 22 percent increase compared to the same period in 2023. This brought the total number of regulated entities under the DFSA’s oversight to 837. Among the sectors seeing significant growth, the wealth management sector saw a 62 percent increase in authorised entities, further solidifying the DIFC’s position as a leading hub for private banking and asset management in the region.
The DIFC continues to be a key player in the global banking network, hosting 27 out of the 29 global systemically important banks (G-SIBs), reinforcing its strategic importance to the financial industry.
