Khaleej Times, Thursday, Jun 30, 2022 | Zul Hijjah 1, 1443
Dubai regulator DFSA bans senior executive for not following rules
Emirates: The Dubai Financial Services
Authority (DFSA) withdrew the authorised individual status and imposed a
restriction on Trevor Conway, a senior executive officer at a DFSA-authorised
firm, following an investigation into his conduct in relation to the firm's
Commodity Murabaha Broking Desk.
The regulator said in a statement on Thursday that the Desk facilitated the
purchase and supply of title to metal commodities (warrants), sourced from
suppliers for use by the Desk's clients, who are mainly banks, to substantiate
their Murabaha-based transactions with their respective customers.
The DFSA's investigation found that for two years and nine months, the Desk made
available warrant numbers taken from warrants they had previously used, thereby
not providing its clients with current title to metal commodities.
It said Conway was aware that holding warrants representing title to metal
commodities was a precondition for entering into Murabaha transactions by its
clients. He also knew that the Desk had not held any valid warrants over the
relevant period after losing its warrant supplier.
The DFSA statement said Conway did not take steps to stop the Desk's misleading
practice.
Furthermore, Conway had failed to stop the Desk from misrepresenting to a client
that the Desk had a supplier providing warrants when, in fact, the supplier had
ceased to provide them.
As a result, the DFSA considers that Conway engaged in conduct that demonstrates
a lack of competence, and, therefore, was not fit to perform any licensed
function in connection with the provision of financial services in or from the
DIFC, said the statement.
The DFSA added that it would continue to safeguard the integrity of Islamic
finance and the DIFC. The due skill, care and competence of individuals working
within the centre are paramount to achieving that objective.
The withdrawal of Authorised Individual status and restriction come into effect
immediately.
Conway agreed to settle this matter, and the action taken against him is final,
DFSA said.