The private banker, Nikhil Das, was handed the severe fine after an investigation by the DFSA in May this year revealed that between July 2012 and January 2013 Das had executed two transactions valued at AED12,478,000 ($3.4m, £2m) and AED18,350,000 ($5m, £3m) respectively, on behalf of a client without his consent.
Handing down the fine, DFSA chief executive Ian Johnston said: “Consumers who rely on the advice and services of private bankers are entitled to expect high standards of conduct from them. The DFSA expects private bankers who provide services in or from the DIFC to act ethically and with integrity. Bankers who do not meet these minimum standards will have to answer to the DFSA.”
“The DFSA will continue to uphold high standards of probity and will not permit any individual, who does not meet its standards, to provide financial services in the DIFC.”
The regulator’s investigation also found Das, who, according to local media reports, worked for BNP Paribas Private Bank, forged the client’s signature on a number of documents and sent fraudulent letters and account statements, containing false and misleading information about his investments. However, the DFSA did point out that the client did not suffer any financial loss as a consequence of Das’ “fraudulent conduct and unauthorised investments”.
The action is the second taken by the regulator in recent weeks. Earlier this month, United Investment Bank was fined for failings in relation to its custodial services.
