DFSA fines licensed directors for failing to inform the DFSA

The Dubai Financial Services Authority (DFSA) has fined Arun Panchariya and Satish Panchariya AED 44,000 (USD 12,000) each for failing to disclose material information to the DFSA.  

The fines follow an investigation by the DFSA, in which the DFSA found that Arun Panchariya and Satish Panchariya failed to disclose material information to the DFSA in their applications to the DFSA to become Authorised Individuals in February 2009.  Their failure to disclose material information continued after they were Authorised by the DFSA in November 2009. 

Arun Panchariya and Satish Panchariya failed to disclose: 

All director and controller positions which they were required to disclose in the applications for Authorisation; and

Investigations and regulatory actions by the Securities and Exchange Board of India in relation to their conduct and the conduct of companies associated with them which they were required to disclose in their applications for Authorisation and/or after they became DFSA Authorised Individiuals. 

By failing to disclose the abovementioned information, Arun Panchariya and Satish Panchariya contravened Laws and Rules administered by the DFSA requiring them to disclose material information to the DFSA and to deal with the DFSA in an open and co-operative manner. 

Mr Paul Koster, Chief Executive of the DFSA said, “It is imperative that Authorised Firms and Authorised Individuals are open and co-operate fully with the DFSA.  The DFSA relies on Firms and Individuals to disclose appropriately any mandatory information and any other information of which the DFSA would reasonably be expected to be notified.  Accordingly, the DFSA will take action where Firms and Individuals have breached these requirements”.