DUBAI: The Dubai Financial Services Authority (DFSA) has issued a Decision Notice against Vedas International Marketing Management (Vedas Marketing) for conducting unauthorized and deceptive financial promotions linked to the Multibank Group. The DFSA has imposed a fine of USD 100,000 (approximately AED 367,000) on Vedas Marketing for two primary reasons.

Firstly, Vedas Marketing promoted financial services related to the Multibank Group to individuals in the Dubai International Financial Centre (DIFC) without the necessary authorisation. Secondly, the firm engaged in misleading practices by falsely claiming that certain entities within the Multibank Group were regulated by the DFSA. In reality, none of the entities promoted were under the DFSA’s regulation.

It’s important to note that while the Multibank Group operates trading platforms, the DFSA’s Decision Notice does not allege any wrongdoing by the group itself. This distinction highlights that the focus of the penalty is on Vedas Marketing’s actions.

In an attempt to challenge the DFSA’s findings, Vedas Marketing referred the matter to the Financial Markets Tribunal (FMT) on June 2, 2024. However, the FMT ruled on July 22, 2024, that Vedas Marketing’s reference should be struck out due to the company’s failure to pay the requisite filing fee.

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Ian Johnston, Chief Executive of the DFSA, emphasised the authority’s commitment to maintaining the integrity and reputation of the DIFC. He stated, “Upholding the integrity and reputation of the DIFC is one of our highest priorities. The DFSA will not hesitate to act against firms that mislead the public about their regulatory status or location, taking necessary steps to deter such conduct.” This case serves as a reminder of the DFSA’s vigilance in safeguarding the financial landscape of Dubai.