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Mon 8 Jan 2007 05:25 PM

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Golden fate for Golden Gate clients

Investors with suspended broker Golden Gate Securities will not lose their money, says DFM.

The Dubai Financial Market (DFM) has said that the 3,000 investors with Golden Gate Securities, which has been banned from trading on UAE bourses, will not lose their money.

Last week the brokerage firm had its activities suspended by the market regulator Emirates Securities and Commodities Authority (ESCA) because of non-compliance with market rules and regulations.

But according to a DFM official quoted in today’s Al Bayan newspaper, the 3,000 investors affected by the action will not lose their money.

This is because all brokerage offices have to deposit AED10million at the financial market to guarantee investors’ rights, and that the capital of the company itself also provides some protection.

Al Bayan also quoted a source as saying that a committee has been set up to study the position of the Golden Gate brokerage.

It was reported that a number of investors have expressed concerns about their money because of the closure of the brokerage office.

However, an employee of the company reportedly claimed that the closure is temporary and that the company will start activities again after solving the problem with the DFM.

Golden Gate was one of two brokerages suspended by the Emirates Securities and Commodities Authority (Esca). However, the other company – Al Safwa Financial Services – was allowed to resume business yesterday having met the authority's laws and licencing requirements.

Four other firms questioned by Esca have also now met the new rules and regulations; another 17 were given until February 4 to comply.

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