Dubai regulator DFSA fines Vedas Marketing for unauthorized financial promotions on Multibank Group
Vedas Marketing had made promotions related to Multibank Group to DIFC-based entities
Dubai: The DIFC regulator has issued a 'decision notice' against Vedas International Marketing Management for unauthorised and deceptive financial promotions related to Multibank Group.
The DFSA (Dubai Financial Services Authority) also imposed a financial penalty of $100,000 (Dh367,000) on Vedas Marketing for:
- Unauthorised financial promotions about Multibank Group to individuals in DIFC; and
- Engaging in misleading and deceptive conduct by representing that certain entities in the Multibank Group were regulated by the DFSA, when in fact, none of the promoted entities were.
The Multibank Group offers trading platforms, and the DFSA has 'made no allegations of wrongdoing against the Multibank Group itself in the decision notice'.
In early June, Vedas Marketing challenged the conclusions in the DFSA’s Decision Notice by referring it to the Financial Markets Tribunal (FMT). The latter directed July 22 that the reference should be struck out due to Vedas Marketing’s failure to pay the required filing fee for the referral.
"Upholding the integrity and reputation of the DIFC is one of our highest priorities," said Ian Johnston, Chief Executive of the DIFC regulator. "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."