Dubai regulator DFSA bans individual from DIFC activities over mishandling metals contracts
Trevor Conway was handling his firm’s commodity Murabaha broking desk
Dubai: The Dubai Financial Services Authority (DFSA) has imposed a ‘restriction’ on Trevor Conway, a senior executive at a DFSA-authorized firm. He has been barred from conducting any licensed activity related to providing financial services ‘in or from’ the DIFC. The withdrawal of ‘Authorised Individual’ status and restriction come into effect immediately.
This followed an investigation into Conway’s conduct when handling the firm’s commodity Murabaha broking desk (the Desk). It relates to the purchase and supply of titles to metal commodities (warrants), sourced from suppliers for use by the Desk’s clients. The clients, mainly banks, had to substantiate their Murabaha-based transactions with their respective customers.
The DFSA investigation found that for two years and nine months, the said Desk had made available warrant numbers taken from those they had previously used, ‘thereby not providing clients with current title to metal commodities’.
“Mr. Conway was aware that holding warrants representing title to metal commodities was a precondition for entering into Murabaha transactions by its clients,” the DFSA said. “And that the Desk had not held any valid warrants over the relevant period after losing its warrant supplier.”
Also, “Mr. Conway did not take steps to stop the Desk’s misleading practice. Further, Mr. Conway had failed to stop the Desk from misrepresenting to a client that the Desk had a supplier providing warrants when, in fact, the supplier had ceased to provide them.”
The DFSA thus “considers Mr. Conway engaged in conduct that demonstrates a lack of competence and therefore he is not fit and proper to perform any licensed function in connection with the provision of Financial Services in or from the DIFC.”
Conway has agreed to settle this matter and the action taken against him is final.