emirates7 - The Dubai Financial Services Authority (DFSA), the independent banking, financial services, and markets regulator of Dubai International Financial Centre (DIFC) has imposed a fine of US$139,722 (AED513,129) on Wael Abdelmohsen Abdellatif Mohamed Emara (Mr Mohsen) for misleading and deceptive conduct.
The fine was reduced from US$285,149 (AED1,047,209) as Mr Mohsen agreed to settle with the DFSA, and after the DFSA considered Mr Mohsen’s request for a reduction of the fine on the grounds of financial hardship.
In addition to the financial penalty, the DFSA has prohibited Mr Mohsen from holding office or being an employee of a DFSA Authorised Firm; and restricted him from performing any function in connection with the provision of financial services in or from Dubai International Financial Centre (DIFC).
Mr Mohsen was a reinsurance broker and held a senior role at Ed Broking (MENA) Limited (the Firm). In this role, he was responsible for assisting cedant insurers (the Firm’s Clients) in placing risks with reinsurance companies. The DFSA imposed a fine of US$455,176 on the Firm for similar and other related breaches of DFSA legislation earlier this year.
The DFSA found that Mr Mohsen misled and deceived cedant insurers and reinsurers over a period of more than three years by:
• quoting higher premiums to cedant insurers and lower premiums to reinsurers for the same placements, causing the difference to be earned as additional brokerage by the Firm;
• advising reinsurers that certain deductions were required from the premiums. However, the amounts deducted were instead retained by the Firm as brokerage; and
• providing one of the Firm’s Clients with reinsurance documents which had been manipulated to higher premiums or lower brokerage and deductions.
The DFSA has further determined that Mr Mohsen lacked integrity, and is not fit and proper to be involved in the provision of financial services in or from the DIFC.
Alan Linning, Managing Director of Enforcement at the DFSA, said, “The DFSA expects employees of Authorised Firms to observe the highest standards of integrity in carrying out Financial Services in or from Dubai International Financial Centre (DIFC). In misleading and deceiving clients and reinsurers as he did, Mr Mohsen failed to meet those standards. The fine imposed on Mr Mohsen and the prohibition and restriction imposed on him reflect the seriousness of his misconduct and serves to warn others against engaging in similar conduct.”
The DFSA remains committed to developing, administering, and enforcing world-class regulations of financial services within DIFC. As part of its strategy and ongoing mission, the Authority will continue to implement stringent enforcement measures and provide clear regulatory guidance to ensure that all entities operating within the Centre adhere to the highest standards of regulation and ethical conduct.
The fine was reduced from US$285,149 (AED1,047,209) as Mr Mohsen agreed to settle with the DFSA, and after the DFSA considered Mr Mohsen’s request for a reduction of the fine on the grounds of financial hardship.
In addition to the financial penalty, the DFSA has prohibited Mr Mohsen from holding office or being an employee of a DFSA Authorised Firm; and restricted him from performing any function in connection with the provision of financial services in or from Dubai International Financial Centre (DIFC).
Mr Mohsen was a reinsurance broker and held a senior role at Ed Broking (MENA) Limited (the Firm). In this role, he was responsible for assisting cedant insurers (the Firm’s Clients) in placing risks with reinsurance companies. The DFSA imposed a fine of US$455,176 on the Firm for similar and other related breaches of DFSA legislation earlier this year.
The DFSA found that Mr Mohsen misled and deceived cedant insurers and reinsurers over a period of more than three years by:
• quoting higher premiums to cedant insurers and lower premiums to reinsurers for the same placements, causing the difference to be earned as additional brokerage by the Firm;
• advising reinsurers that certain deductions were required from the premiums. However, the amounts deducted were instead retained by the Firm as brokerage; and
• providing one of the Firm’s Clients with reinsurance documents which had been manipulated to higher premiums or lower brokerage and deductions.
The DFSA has further determined that Mr Mohsen lacked integrity, and is not fit and proper to be involved in the provision of financial services in or from the DIFC.
Alan Linning, Managing Director of Enforcement at the DFSA, said, “The DFSA expects employees of Authorised Firms to observe the highest standards of integrity in carrying out Financial Services in or from Dubai International Financial Centre (DIFC). In misleading and deceiving clients and reinsurers as he did, Mr Mohsen failed to meet those standards. The fine imposed on Mr Mohsen and the prohibition and restriction imposed on him reflect the seriousness of his misconduct and serves to warn others against engaging in similar conduct.”
The DFSA remains committed to developing, administering, and enforcing world-class regulations of financial services within DIFC. As part of its strategy and ongoing mission, the Authority will continue to implement stringent enforcement measures and provide clear regulatory guidance to ensure that all entities operating within the Centre adhere to the highest standards of regulation and ethical conduct.
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