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DFSA Censures Individual for Misleading Conduct

10 Apr 2017

The Dubai Financial Services Authority (DFSA) has censured Mrs Jai Surve, a former employee of a DFSA Authorised Firm, for providing the DFSA with false and misleading information.

Mrs Surve was a Business Consultant at an Authorised Firm which operated an online trading platform.  From 2012 to 2016 Mrs Surve introduced clients to the platform and gave training to clients on how to use this platform. 

In late 2015, the DFSA received information that Mrs Surve may have executed unauthorised trades on the platform using the online account of one of her clients.  The DFSA interviewed Mrs Surve in December 2015 about the allegation and Mrs Surve stated to the DFSA that she did not know the password for the client’s online account and did not execute any trades on the client’s online account.

The DFSA commenced an investigation, and interviewed Mrs Surve again in November 2016.  During this interview, Mrs Surve admitted that she knew the password to the client’s online trading account and that she had executed trades on the client’s online account after receiving instructions from a third party.

Mrs Surve accepted responsibility for misleading the DFSA and agreed to settle the matter at an early stage following the conclusion of the investigation. While conduct like Mrs Surve’s has, in the past, resulted in a financial penalty, the DFSA has concluded that a public censure is the most appropriate action given the circumstances of this matter and, in particular, Mrs Surve’s personal situation. The DFSA did not make any findings of contraventions in relation to Mrs Surve’s trading activities.

Mr Ian Johnston, Chief Executive of the DFSA said: “For a regulator to be effective, it is imperative that it receives information which is true, precise and complete.  The DFSA will therefore take action against any person who provides information to the DFSA which is false and misleading.” 

A copy of the DFSA’s Decision Notice can be found in the DFSA website under Regulatory Actions.

https://www.dfsa.ae/en/What-We-Do/Enforcement#Regulatory-Actions