Dubai Financial Services Authority slaps $100,000 fine on firm for unauthorised and misleading financial promotions

The Dubai Financial Services Authority (DFSA) published on Tuesday a Decision Notice against Vedas International Marketing Management (Vedas Marketing) for unauthorised and deceptive financial promotions related to the Multibank Group.

The DFSA has imposed a financial penalty of $100,000 (Dhs367,000) on Vedas Marketing for:

• conducting unauthorised financial promotions about the Multibank Group to individuals located in the Dubai International Financial Centre (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.

On 2 June 2024, Vedas Marketing challenged the conclusions in the DFSA’s Decision Notice by referring it to the Financial Markets Tribunal (FMT). However, the FMT directed on 22 July 2024 that the reference should be struck out due to Vedas Marketing’s failure to pay the required filing fee for the referral.

Ian Johnston, Chief Executive of the DFSA, said: “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.”