The Dubai Financial Services Authority (DFSA) imposed a USD 504,000 (AED 1,850,940) fine on Ark Capital Management (Dubai) Limited for inadequate systems and controls to detect and escalate potential market abuse and for failing to notify the DFSA of a proposed change in control. The firm settled, receiving an early settlement discount; absent the discount, the fine would have been USD 720,000. The DFSA found that although the firm had tools to identify trading patterns consistent with market abuse typologies, it did not adequately assess alerts and in some cases did not review them promptly, resulting in at least ten instances of trading being overlooked and not reported to the DFSA, or reported late. Separately, an investor acquired 9.5% of the firm’s shares under an agreement that included an option to increase the holding to 90% once conditions were met; while the change in control ultimately did not proceed, the DFSA concluded the firm still had an obligation to notify it of the proposed change and that structuring transactions below approval thresholds does not remove this notification requirement. A Decision Notice has been published on the DFSA website.

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