By Staff writer
Dubai Financial Services Authority says it has imposed six-year restriction on Noyan Ayhan after investigation
A former trader at a company authorised by the Dubai Financial Services Authority (DFSA) has been banned after inflating his trading book by around $11 million to cover up losses.
The DFSA said in a statement that it has imposed a six-year restriction on Noyan Ayhan for misconduct that "demonstrated that he lacked integrity".
It said that he is "not fit and proper to perform any functions in connection with the provision of financial services in or from the Dubai International Financial Centre (DIFC)".
The DFSA added that its action follows an investigation which found that Ayhan falsified internal records on at least 163 occasions from May to July 2014, in a practice known as "mismarking".
He also colluded with traders on a Turkish market to "mark the close" on the last trading day of the month in April, May and June 2014 by creating closing prices that would match his mismarks, the DFSA said.
It added that the firm he worked for, which has not been named, carried out an internal investigation and found that Ayhan acted dishonestly and committed gross misconduct under the firm's codes of conduct.
The firm notified the DFSA of the misconduct, and co-operated fully with the DFSA's investigation.
Ian Johnston, chief executive of the DFSA said: "The DFSA expects employees of authorised firms in the DIFC to act with integrity when performing their duties. Mr Ayhan was a senior and experienced trader who held a position of trust at the firm."
After a period of six years, the DFSA may consider varying or revoking the restriction on application by Ayhan, the statement 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.