The Dubai Financial Services Authority (DFSA) has set a fine of Dh5,023,375 on R.J. O’Brien (Mena) Capital Limited for breaching compliance regulations.
The firm was penalized for inadequate planning and analysis post-acquisition, leading to non-compliance with regulatory obligations.
Violations Uncovered:
The firm failed to sufficiently plan for compliance with ongoing regulatory duties after acquiring an additional brokerage.
Senior management was aware of compliance resource deficiencies but did not adequately address them, violating DFSA legislation.
Lack of Deliberate Misconduct:
No evidence suggested deliberate law-breaking by the company.
Acknowledging the firm’s commitment to rectifying deficiencies, engaging an external compliance expert, and ensuring remediation, the DFSA reduced the initial fine of Dh10,251,789.
Emphasis on Adequate Compliance Resources:
Patrick Meaney, Head of Enforcement at DFSA, highlighted the crucial role of compliance as more than a business expense, emphasizing the necessity for authorized firms to possess sufficient compliance resources to meet legal and regulatory obligations.
