Connect with us

Business Insights

DFSA imposes fine on FFA private bank for market abuse failures

The Dubai Financial Services Authority (DFSA) defined FFA Private Bank’s approach towards evaluating suspicious trading as “flawed.”

The Dubai Financial Services Authority (DFSA) defined FFA Private Bank’s approach towards evaluating suspicious trading as “flawed.”

Dubai Financial Services Authority Imposes Fine on FFA Private Bank for Market Abuse Failures

The Dubai Financial Services Authority (DFSA) has taken action against FFA Private Bank, a Dubai-based firm, by levying a fine of AED1,373,122 (equivalent to $370,000). 

This penalty was imposed due to the firm’s failure to maintain adequate systems for identifying, assessing, and reporting trading activities that raised suspicions of market abuse.

Duration of Violations

The DFSA identified these violations as occurring between February 2018 and March 2021. The authority’s investigation revealed shortcomings in the firm’s processes related to detecting and reporting activities that could be indicative of market abuse.

Prohibition and Subsequent Reassessment

In 2021, the DFSA imposed a prohibition on FFA Private Bank, only to lift it a few months later. The decision to lift the prohibition came after the firm was able to demonstrate to the DFSA that it had taken effective measures to address the deficiencies in its systems.

This regulatory action highlights the importance of maintaining robust systems to detect and address potential market abuse in financial services, with the DFSA imposing a fine as part of its commitment to ensuring compliance within the industry.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending