DFSA obtains court injunction against Enduam Asset Management
The DFSA obtained a court order today against Patrick Lochrie, David Carruthers and Enduam Asset Management (also known as Enduam Consulting) for making false and misleading representations concerning their regulatory status in relation to the Dubai International Financial Centre. This is the first court action taken by the DFSA.
According to the application filed by the DFSA, Patrick Lochrie and David Carruthers attempted to induce members of the public to invest in their company, Enduam, by falsely representing that Enduam had either obtained a financial service licence or were in the final stages of obtaining such a licence within the DIFC.
The Dubai Financial Services Authority had no record of any such application ever being filed.
Although the defendants did not appear on the application, the Chief Justice of the DIFC Court, Sir Anthony Evans, granted the DFSA’s request for an interim injunction on the condition that the matter return before him on January 8, 2007 for a full hearing of the matter to take place. The interim application was heard without notice to the defendants.
The Chief Justice ordered that Patrick Lochrie, David Carruthers and Enduam be restricted from representing directly or indirectly (whether by themselves or by instructing or encouraging any other person) that Enduam had become licensed or applied for a licence with the DIFC.
David Knott DFSA Chief Executive stated: “This court action sends the strong regulatory message that the DFSA will take action against conduct or misrepresentations that negatively affects the reputation of the DIFC or DFSA in relation to a company’s regulatory status.”
The Dubai Financial Services Authority (DFSA) is an independent, integrated regulatory authority responsible for the regulation of all financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), including asset management, banking, securities trading, Islamic finance, re-insurance, and an international financial exchange. The DFSA has been created using principle-based primary legislation modelled closely on that used in London and New York, and the DFSA regulatory regime operates to standards that meet or exceed those applying in the world's major financial centres.
The Dubai Financial Services Authority (DFSA) is a central component of the DIFC, a new financial centre established to position Dubai as a recognised hub for institutional finance, and the regional gateway for capital and investment to the Middle East.
© 2006 Al Bawaba (www.albawaba.com)