The Dubai Financial Services Authority (DFSA) has taken action against Stuart Coles and the three companies of which he is a director.
Coles has been fined $240,000 (£191,420, €224,100) with the three firms censured, after he obstructed a DFSA investigation in 2021.
The three businesses in question are tech firms Coworth Fintech and Novus Fintech and advice company Coworth Investments.
The regulator said that, in April 2021, it started an investigation against the two tech firms as it suspected they were engaging in financial services activities in or from the DIFC without being authorised to do so.
The watchdog later added the advice business to the investigation as it had a trading address and registered office in the UK.
‘Obstruction’
In May 2021, the DFSA attended the offices of the two fintech companies in the Dubai International Financial Centre (DIFC) to obtain information and documents it considered relevant to the investigation.
But the regulator claims that Coles “instructed people present in the offices not to allow the DFSA to inspect and copy the requested information stored on computers and other devices that were being used at the offices in the DIFC”.
The watchdog added that Coles did not have a reasonable excuse for refusing to hand over documents and that his failure to comply with the investigation constituted obstruction.
Patrick Meaney, head of enforcement at the DFSA, said: “The DFSA will not permit individuals or companies to obstruct lawful investigations. Such behaviour undermines the core objectives of the DFSA and demonstrates that those engaging in this conduct are entirely unsuitable to carry out business in the DIFC.
“The significant fine imposed on Mr Coles also demonstrates the DFSA will take appropriate action against individuals that are most culpable for misconduct.”
Coles has referred the decision to the Financial Markets Tribunal for review, meaning that the regulator’s action is currently provisional. The tribunal will confirm, amend or overturn the DFSA’s decision.
