Dubai, UAE, 18 October 2011:  The Dubai Financial Services Authority (DFSA) today announced that it has withdrawn the Licence of Siraj Capital (Dubai) Limited (Siraj) to provide financial services in the Dubai International Financial Centre (DIFC).

The DFSA took this action because Siraj contravened the Laws and Rules administered by the DFSA by failing to:

  • Maintain adequate Capital Resources during the period from 1 October 2010 to the date of the withdrawal of Licence;

  • Have adequate systems and controls to enable it to determine and monitor its Capital Requirements.

  • Advise the DFSA immediately in regard to the occurrence of an action which would result in material changes in its capital adequacy or solvency.

  • Disclose a matter which reasonably  tends to show a breach or likely breach of the DFSA Laws or Rules;

  • Ensure that its affairs were managed effectively and responsibly by its senior management; and

  • Have adequate systems and controls to ensure, as far as is reasonably practical, that it complied with legislation applicable in the DIFC.

As a result of the above contraventions, the DFSA found Siraj was not fit and proper to remain as an Authorised Firm in the DIFC and withdrew Siraj's Licence.  The DFSA's exercise of its powers in this regard was in the pursuit of the DFSA's regulatory objective of preventing, detecting and restraining conduct that causes or may cause damage to the reputation of the DIFC or the financial services industry in the DIFC.

The DFSA withdrew the Licence on 18 September 2011. No clients of the Firm suffered a loss as a result of the Firm's contraventions.

Mr Paul M Koster, Chief Executive of the DFSA said, "Financial Services Firms operating in the DIFC are required to maintain adequate Capital Resources to satisfy day-to-day claims on the business and to meet future contingencies. The DFSA's Capital Requirement provides investors and customers with the confidence that institutions will be able to meet claims as and when they fall due.   The DFSA will take appropriate action where Firms fail to maintain adequate Capital Resources."

-Ends- 
 
The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange. 

Paul M Koster was appointed Chief Executive of the DFSA on 1 December 2008. Prior to becoming Chief Executive, he was Commissioner and Member of the Executive Board of the Autoriteit Financiële Markten (AFM), the national, integrated conduct of business financial services regulator for the Netherlands, where he was identified as one of the four leaders shaping the conscience of Dutch business. Mr Koster joined the AFM in March 2001 and in addition to his duties as a Commissioner, he chaired, from May 2006 until December 2007, CESR-Fin, the permanent working party of the Committee of European Securities Regulators that co-ordinates the endorsement and enforcement of financial reporting standards in Europe.

For the previous two years he had chaired CESRs Sub-committee on International Standards Endorsement. During his time with the AFM, he was also a Member of the IOSCO Chairs' Committee and, as Chief Executive of the DFSA, he remains actively involved in the work of IOSCO.

Mr Koster previously served as Executive Vice President (Corporate Internal Audit) at Royal Philips Electronics 1998 to 2001; as Managing Partner Corporate Finance, Coopers & Lybrand 1988 to 1998; and as Chief Compliance Officer and Acting Commissioner of Quotations, Amsterdam Stock Exchange 1986 to 1988; and carried out a number of senior finance functions in his earlier career, having trained as an accountant with Arthur Andersen. Mr Koster is a licensed Registered (Chartered) Accountant having qualified through the Royal Dutch Institute of Chartered Accountants in 1977 and certified as a registered auditor in 1983.

In May 2009, Mr Koster joined the Advisory Board of the Emirates Securities and Commodities Authority (SCA), the UAE's federal securities regulator, and in July 2009, he also became a Member of the Consultative Advisory Groups of the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA). 

In September 2010, Mr Koster won the 'CEO of the Year for Financial Services' award and was voted one of the most influential expatriates living and working in the region today.

For further information please contact:
Ms Angharad Irving - Jones        
Head of Corporate Communications        
Dubai Financial Services Authority
Level 13, The Gate
Dubai, U.A.E.
Tel: +971 (0)4 362 1661 
Fax: +971 (0)4 362 0801
Email: airvingjones@dfsa.ae
www.dfsa.ae

© Press Release 2011