The DFSA withdrew the licence on the grounds that the firm is 'no longer fit and proper' to hold DIFC financial services licence
The Financial Markets Tribunal has affirmed a decision by the Dubai Financial Services Authority (DFSA) to withdraw the licence of Royal Shield Ltd to operate in or from the Dubai International Financial Centre (DIFC).
The DFSA withdrew the licence on the grounds that the firm is "no longer fit and proper" to hold the financial services licence.
The firm disputed the DFSA’s original decision and referred it to the tribunal which has dismissed the reference and affirmed the DFSA’s decision.
The DFSA decided to withdraw Royal Shield Ltd’s licence last September based on concerns relating to the firm’s failure to maintain adequate financial resources to conduct and manage its affairs properly; the lack of sufficient personnel, including not having a finance officer.
The tribunal, which is operationally independent of the DFSA and has its own rules of procedure, directed the firm to highlight the aspects of the DFSA’s decision with which it disagreed and the reasons why.
It said Royal Shield Ltd failed to comply with this direction, resulting in it affirming the DFSA’s original decision.
Bryan Stirewalt, chief executive of the DFSA, said: “The DFSA requires all authorised firms to remain fit and proper, and maintain adequate resources, at all times. When the DFSA has reason to believe a firm is failing in these obligations, it will take appropriate action, including, where necessary, withdrawing a firm’s licence. The DFSA welcomes the FMT’s decision on this matter.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.