Tuesday, Oct 18, 2011
DUBAI (Zawya Dow Jones)--Dubai's Financial Services Authority, or DFSA, has withdrawn the license of Siraj Capital Dubai to operate in the Dubai International Financial Center, saying the privately-owned Saudi investment firm wasn't a "fit and proper" tenant as it failed to maintain adequate levels of capital to meet its day-to-day obligations as well as any future contingencies.
The DFSA, in an emailed statement, said it withdrew the DIFC licence earlier Tuesday.
Siraj Dubai failed to maintain adequate capital resources during the period from Oct. 1 2010 to today, or have adequate systems and controls to enable it to determine and monitor its capital requirements, the Dubai regulator said. It also didn't advise the DFSA immediately in regard to the occurrence of an action which would result in material changes in its capital adequacy or solvency.
No clients of Siraj Dubai suffered a loss as a result of the firm's license contraventions, the regulator 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," said Paul Koster, the DFSA's chief executive officer. "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."
Siraj Capital wasn't immediately available for comment.
-By Tim Falconer, Dow Jones Newswires; +9714 446-1690; tim.falconer@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
18-10-11 1050GMT
