DUBAI — The Dubai Financial Services Authority, the independent regulator of banking, financial services and markets in the Dubai International Financial Centre, has imposed a fine of US$139,722 (AED513,129) on Wael Abdelmohsen Abdellatif Mohamed Emara, also known as Mr. Mohsen, for misleading and deceptive conduct.
The fine was reduced from US$285,149 (AED1,047,209) after Mr. Mohsen agreed to settle with the DFSA and requested a reduction on the grounds of financial hardship.
In addition to the financial penalty, the DFSA prohibited Mr. Mohsen from holding office or serving as an employee of a DFSA-authorized firm and restricted him from performing any function connected with the provision of financial services in or from the DIFC.
Mr. Mohsen was a reinsurance broker who held a senior role at Ed Broking (MENA) Limited. He was responsible for assisting cedant insurers, the firm’s clients, in placing risks with reinsurance companies. Earlier this year, the DFSA fined the firm US$455,176 for similar and related breaches of DFSA legislation.
The DFSA found that Mr. Mohsen misled and deceived cedant insurers and reinsurers over more than three years by quoting higher premiums to cedant insurers and lower premiums to reinsurers for the same placements, with the difference retained by the firm as additional brokerage.
The regulator also found that Mr. Mohsen advised reinsurers that certain deductions were required from premiums, but the deducted amounts were instead retained by the firm as brokerage.
In addition, the DFSA said Mr. Mohsen provided one of the firm’s clients with manipulated reinsurance documents showing higher premiums or lower brokerage and deductions.
The DFSA further determined that Mr. Mohsen lacked integrity and was 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 authorized firms to observe the highest standards of integrity in carrying out financial services in or from 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 serve as a warning to others against engaging in similar conduct.”
The DFSA said it remains committed to developing, administering and enforcing world-class financial services regulations within the DIFC and will continue implementing stringent enforcement measures and regulatory guidance to ensure entities operating within the center adhere to high regulatory and ethical standards.
With Inputs from WAM