In a decisive move to protect financial integrity, the Dubai Financial Services Authority (DFSA) has fined Vedas International Marketing Management (Vedas Marketing) $100,000 (AED 367,000) for promoting financial products in an unauthorised and misleading manner.
Vedas Marketing drew the DFSA’s ire for promoting Multibank Group’s services without permission to people within the Dubai International Financial Centre (DIFC) and falsely claiming that certain entities within the Multibank Group were regulated by the DFSA. In reality, none of the mentioned entities held such regulatory status.
Despite these accusations, it’s essential to note that the DFSA did not allege any misconduct by Multibank Group itself, which provides trading platforms.
Attempting to dispute the penalty, Vedas Marketing referred the case to the Financial Markets Tribunal (FMT) on June 2, 2024. However, this effort collapsed on July 22, 2024, when the FMT dismissed the case after the company failed to pay the mandatory filing fee.
Ian Johnston, DFSA’s Chief Executive, emphasized the authority’s commitment to maintaining trust and transparency in the financial landscape of DIFC. He stated, “Upholding the integrity and reputation of the DIFC is one of our highest priorities. The DFSA will not hesitate to act against firms that mislead the public about their regulatory status or location, taking necessary steps to deter such conduct.
