Dubai: The licenses of DIFC-based Red Spear Capital has been suspended for 12 months by the regulator.
The Dubai Financial Services Authority (DFSA) made the move with the :aim of protecting direct and indirect users of the financial services industry in the DIFC," it said in a statement.
Red Spear’s licence was suspended due to "serious concerns" about the adequacy of financial resources, its non-compliance with the DFSA rulebook requirements and not maintaining an open relationship with the DFSA.
In May last year, the regulator issued fines against another licensed entity, Al Masah Capital and barred the firm's founder - Shailesh Dash - from taking on any role within the DIFC mandate.
"The DFSA is committed to protecting the reputation and integrity of the DIFC’s financial services and will take action to ensure the interests of direct, indirect, and prospective users of financial services in the DIFC are protected," the statement added. "The DFSA regularly reminds firms of their requirement to maintain adequate financial resources at all times, and of the importance of dealing with the DFSA in an open and cooperative manner."