By Daniel Stanton
Regulator takes action against unauthorised individual for promoting equity fund in the DIFC.
The Dubai Financial Services Authority (DFSA) has accepted an Enforceable Undertaking from Rupert Neil Bumfrey in relation to his activities in the Dubai International Financial Centre (DIFC).
The DFSA took action after receiving complaints that an offer of securities had been made by Bumfrey in the DIFC.
Bumfrey was promoting the First Persian Equity Fund Limited, which is managed by Bank Melli Iran Investment Company.
No prospectus for the fund has been filed with the Dubai Financial Services Authority (DFSA), which regulates business in the DIFC, and Bumfrey is not authorised or recognised to undertake activities in financial services in the DIFC.
"I can advise that Mr. Bumfrey is not an authorised individual or in any way authorised to carry out financial services activities in or from the DIFC. Mr. Bumfrey was acting as agent on behalf of a third party in his promotion of the securities in the DIFC," said Stephen Glynn, head of enforcement at the DFSA.
Bumfrey has agreed to terms and conditions which are set out in the DFSA Enforceable Undertaking, dated 28 July 2007, pursuant to Article 89, Regulatory Law No. 1 of 2004. He undertakes to refrain from making an offer of securities or carrying out any financial services in or from the DIFC for a period of twelve months from the date of the signing of the undertaking.
Bumfrey will not be able to carry out any financial services in the DIFC unless appropriately authorised by the DFSA. The Undertaking is legally enforceable under the laws of the DIFC.
"Maintaining the integrity of the DIFC is one of the primary objectives of the DFSA. The DFSA does this by ensuring that persons who provide financial services in the DIFC are appropriately licensed and have in place measures that protect the interests of investors," said David Knott, CEO of the DFSA.
"Likewise, persons making offers of securities in the DIFC must make appropriate disclosures to potential investors about the risks associated with investing in financial products. Appropriate disclosures enable investors to make choices about the risk profile and type of products in which they wish to invest," he added.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.