The Dubai Financial Services Authority (DFSA) announced on Tuesday that it had fined Vedas International Marketing Management $100,000 (around AED 367,000) for “unauthorised and misleading financial promotions related to the Multibank Group.”
The DFSA stated that Vedas Marketing carried out unauthorised promotions targeting individuals within the Dubai International Financial Centre (DIFC), falsely suggesting that certain Multibank Group entities were regulated by the DFSA, when in reality, none of the entities it promoted held such regulatory status.
“Maintaining the DIFC’s integrity and reputation is among our top priorities. The DFSA will take firm action against companies that mislead the public about their regulatory status or location, ensuring measures are in place to prevent such behaviour,” said Ian Johnston, DFSA’s chief executive.
The Multibank Group provides trading platforms, and the DFSA clarified that it has not alleged any misconduct by the Multibank Group itself as part of this decision.
On 2 June 2024, Vedas Marketing disputed the DFSA’s findings by referring the decision to the Financial Markets Tribunal (FMT). However, the FMT ordered on 22 July 2024 that the referral be struck out because Vedas Marketing did not pay the necessary filing fee.
In the first half of 2024, the DFSA authorised 61 new firms, reflecting a 22 per cent increase from the same period in 2023 and bringing the total number of regulated entities to 837.
The wealth management sector saw a 62 per cent rise in authorised entities, bolstering the DIFC’s position as a leading centre for private banking and asset management in the region. The DIFC is also now home to 27 of the 29 globally significant banks (G-SIBs), highlighting its essential role within the global banking system.
