The Dubai Financial Services Authority (DFSA) has issued an $87,500 fine against a senior executive of Dubai-based wealth manager Morgan Gatsby for “multiple serious breaches” of its rules.
In addition to the financial penalty, Ajay Arora has also been barred from working for a regulated firm in the Dubai International Financial Centre (DIFC) or for carrying out any financial services work from the centre.
Arora had worked for Morgan Gatsby since 2013, becoming its senior executive officer making him responsible for overseeing the firm’s day to day activities.
However, the DFSA found that he continued to engage in misconduct despite being warned on numerous occasions. According to the watchdog, Arora “executed client transactions without authorisation and engaged in misleading and deceptive conduct towards those clients and the DFSA”.
Furthermore, one of the transactions was carried out despite explicit instructions from the client not to do so.
The penalty imposed on Arora follows a $246,558 fine issued to Morgan Gatsby in January 2020 as well as a suspension of its license back in November 2018. Arora’s fine was also reduced by $100,000 following his plea of financial hardship and agreement to an early settlement.
“We hold authorised individuals, particularly senior executive officers, to the highest standards of integrity in discharging their responsibilities for the management, supervision and control of an authorised firm,” said Bryan Stirewalt, chief executive at the DFSA. “Arora did not meet these standards, even after he was repeatedly notified of compliance concerns regarding Morgan Gatsby’s activities.”
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