Forsyth thrown out of DIFC

Forsyth Partners Global Distributors and Forsyth Middle East are no longer allowed to operate out of the DIFC.

Dubai’s financial regulator today threw two subsidiaries of global asset management group Forsyth Partners out of the Dubai International Financial Centre (DIFC).

The Dubai Financial Services Authority (DFSA) said in a statement it has withdrawn the licence of Forsyth Partners Global Distributors to carry out financial services activities in or from the DIFC.

The DFSA said the subsidiary "failed to meet the applicable regulatory capital requirements and was unable to demonstrate a capacity to remedy that breach”, without going into further detail.

Forsyth Partners Global Distributors had until Sunday to demonstrate it met regulatory requirements following a DFSA notice on August 22 ordering the firm to stop all activity that might prejudice its clients or creditors.

The DFSA also withdrew the licence of Forsyth Middle East at the request of the company, without providing any further information.

Both were Category 4 firms authorised to arrange credit or deal in investments and to advise on financial products or credit.

"Category 4 firms are not authorised to accept client money and therefore, withdrawal of the licence does not place DIFC client funds at risk," the DFSA statement added.

Forsyth said in a statement it agreed with the withdrawal of its DIFC financial services licences, and that its UK based investment operations would not be affected.

Forsyth's exit from the DIFC seems to be part of a restructuring of its global operations.

The company said it has been "re-examining" its business model since the start of the year, and further announcements about the group’s operations would be made shortly.

The restructuring has seen Forsyth open a European distribution operation, based in London, and its Dublin domiciled UCITS 3 funds registered for sale in Italy and Finland, it said.

Forsyth chief executive Paul Forsyth told Arabian Business earlier today that he had "no intention" of re-applying to the DIFC.

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