The Dubai Financial Services Authority imposed a USD 109,200 (AED 401,000) fine on Vault Wealth Limited for advising on financial products and arranging investment deals in or from the Dubai International Financial Centre without DFSA authorization. Vault Wealth settled the matter, reducing the fine by 30% from USD 156,000 (AED 573,000). Between February and May 2024, Vault Wealth employees operated from the offices of a related, unregulated DIFC entity, where they advised prospective clients, assisted with investment platform onboarding and collected know-your-customer documents to arrange investment accounts. The office did not make clear that the DIFC entity was separate from Vault Wealth, potentially leading clients to believe the firm was DFSA-authorized. Although Vault Wealth is incorporated in the Abu Dhabi Global Market and licensed there by the Financial Services Regulatory Authority, that authorization did not permit it to provide financial services in or from DIFC. The DFSA treated senior management’s conduct as an aggravating factor because managers knew DFSA authorization was required but continued the activities and failed to act on concerns raised by the firm’s then compliance officer.
Dubai Financial Services Authority fines Vault Wealth USD 109,200 for unauthorized financial services in DIFC
The Dubai Financial Services Authority fined Vault Wealth Limited USD 109,200 for providing investment advice and arranging deals in or from DIFC without authorization. The firm’s license in the Abu Dhabi Global Market did not permit these activities in DIFC. Senior management’s awareness of the licensing requirement and failure to address compliance concerns aggravated the breach.