The Dubai Financial Services Authority imposed a USD 455,176 (AED 1,671,633) financial penalty on reinsurance broker Ed Broking MENA Limited for contraventions of DFSA legislation, including engaging in misleading and deceptive conduct in its dealings with cedent insurers and reinsurers. The firm agreed to settle and pay a fine comprising disgorgement of USD 175,343 (USD 148,039 plus interest of USD 27,304) and a penalty of USD 279,833, reduced from USD 575,104 (AED 2,112,069) due to the settlement. The DFSA found the broker provided cedent insurers and reinsurers with different premiums for the same reinsurance placements, misled reinsurers about premium deductions and the brokerage earned, and misled a client about brokerage earned from 121 placements and deductions on some placements. The misconduct was facilitated by a practice of not disclosing brokerage commissions to clients, failures to adhere to the firm’s own systems and controls, and the use of altered documents, alongside failures to ensure communications were clear, fair and not misleading and to act with due skill, care and diligence; the authority also noted the firm promptly reported the issues, investigated internally and paid restitution to clients where altered documents were used. A Decision Notice with full details has been published.

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