The Dubai Financial Services Authority fined R $1,368,767 (AED 5,023,375). J. O'Brien (MENA) Capital Limited (the Company) for multiple breaches of the DFSA Act, including inadequate compliance systems and controls.
The value of the penalty was reduced for a number of reasons, including, among others, the company's undertaking to provide an enforceable undertaking to the Dubai Financial Services Authority to address the violations and its agreement to settle the matter. The fine was reduced from $2,793,403 (10,251,789 dirhams).
The Dubai Financial Services Authority reached the following conclusions:
• After acquiring an additional brokerage firm, the firm did not plan or conduct adequate analyzes to ensure compliance with its existing regulatory obligations.
• The company's senior management is aware of the inadequate resources required for compliance and its failure to properly address this issue to ensure full compliance with its regulatory obligations.
However, the Dubai Financial Services Authority found no evidence that the company deliberately violated laws and regulations.
The DFSA acknowledges that the company has given an enforceable undertaking in terms of agreeing to address deficiencies in the system, controls and compliance evidence; Appointing an external compliance expert to help the company comply with its obligations and verify completion of necessary procedures to address deficiencies.
Patrick Meaney, Head of Enforcement at the Financial Services Authority of Dubai, said: “Licensed firms are obliged to check that they have adequate compliance and other resources to comply with their legal and regulatory obligations. Compliance is not an incidental cost within the business process, but a critical component that must be adequately resourced in terms of staff numbers, experience and skills.
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