The Dubai Financial Services Authority (DFSA) has given penalties to two investment firms and three individuals for failing to comply with financial legislation.
Al Masah Capital and Al Masah Capital Management have been accused of carrying out unauthorised activities and providing misleading information.
Shailesh Dash, Nrupaditya Singhdeo and Don Lim Jung Chiat, the three people connected to the two companies, were found to have aided the businesses in breaching DFSA regulation between August 2010 and June 2016.
They have all been given fines:
- Al Masah Capital – $3m (£2.4m, €2.7m);
- Al Masah Capital Management – $1.5m;
- Shailesh Dash – $225,000;
- Nrupaditya Singhdeo – $150,000;
- Don Lim Jung Chiat – $150,000.
The trio received prohibition orders as well, but the DFSA did not specify how long the bans would be applicable for.
The investigation
Al Masah Capital is registered in the Cayman Islands and is not authorised to carry out any financial services activity in or from the Dubai International Financial Centre (DIFC).
The regulator found that the firm managed collective investment funds and arranged investment deals in the DIFC, despite not being authorised to do so.
It made misleading or deceptive statements about its fees in the documents relating to the offers of units in funds the company managed.
The promotion of the products was also unauthorised.
Al Masah Capital Management, however, was regulated by the DFSA and allowed to operate in and from the DIFC; but, just like its sister company, it provided misleading statements and failed to take reasonable steps to ensure that the marketing information was clear and fair, according to the watchdog.
Pushing back
When it came to the three individuals, the DFSA found that “they were knowingly concerned in the alleged contraventions by the two firms”.
“Additionally, as Dash and Singhdeo were authorised individuals at the time the alleged misconduct occurred, the DFSA also found that they failed to act with the standard of integrity required of them in their roles.
“The DFSA further found that Singhdeo and Lim engaged in misleading and deceptive conduct by being knowingly involved in the alteration of a bank statement to conceal the payment of fees into a bank account.”
All three individuals and both firms have contested the watchdog’s decisions, and the DFSA has referred their cases to Dubai’s Financial Markets Tribunal.
