A branch of the insurance firm Clements has been fined more than $85,000 by the regulator of the Dubai International Financial Centre (DIFC) for breaching rules 21 times.
The Dubai Financial Services Authority (DFSA), which regulates the DIFC, found the firm intermediated contracts for risks onshore in the UAE when it was permitted only to intermediate contracts for risks situated in the DIFC.
“Intermediating direct insurance in the UAE (outside of the DIFC) is prohibited by DFSA administered legislation and the UAE Federal Law,” said Ian Johnston, chief executive of the regulator. “The DFSA will take appropriate action against firms in the DIFC that engage in any unlicensed insurance activities.”
Clements (Dubai) engaged in the prohibited activities between January and July 2014. The regulator says it reduced the fine because the firm self-reported the misconduct and took steps to remedy the problems, including appointing new staff.
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