• The Regulator further found that the sole shareholder and former director of Elia, Mr. Babar Abbas directed Elia’s conduct and provided false or misleading information to the FSRA in its investigations

Abu Dhabi, UAE: The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) announces the conclusion of proceedings brought by the FSRA against Elia Investments Limited (Elia) and Mr. Babar Abbas, Elia’s sole shareholder and former director.

An FSRA investigation found that Elia had:

  • over the period from around July 2019 to around June 2021, carried on, and purported to carry on, the regulated financial services activity of Providing Credit in ADGM on an unauthorised basis;
  • published false statements concerning its activities;
  • made false claims to be authorised to undertake financial services.

Elia was at no time licensed or authorised by the FSRA to carry on any form of regulated activity in ADGM.

The investigation found that Elia had conducted unauthorised regulated activities by entering into credit agreements with at least four victims. Elia did not provide the credit it purported to offer under each agreement and, in fact, did not have the capacity to provide the credit it purported offer. Instead, Elia solicited and obtained upfront payments from its victims under these arrangements, and then failed to return the majority of this money, causing financial harm to its victims.

Accordingly, the FSRA has imposed on Elia a financial penalty of USD 2,381,798, which includes a disgorgement amount of USD 1,881,798 and a fine of USD 500,000.

The FSRA’s investigation also found that Mr. Abbas directed Elia’s conduct and used the money Elia had obtained, and not returned, for his own personal benefit.

Further, Mr. Abbas was found to have provided false and misleading information to the FSRA during the FSRA’s investigation.

Accordingly, the FSRA has also imposed a financial penalty of USD 2,381,798 on Mr. Abbas, which includes a disgorgement amount of USD 1,881,798.00 and a fine of USD 500,000.00. In addition, the FSRA has concluded that Mr. Abbas is not a fit and proper person to be involved in the industry and prohibited him indefinitely from performing functions in the ADGM.

Emmanuel Givanakis, Chief Executive Officer of the FSRA said: “The FSRA will take the necessary and appropriate action against entities and individuals that are in breach of our regulations and rules, including those that engage in unlicensed activities in ADGM or who falsely purport to be licensed, and seek to mislead the public in this way.

The conduct in this matter was particularly serious, in that the entity and individual engaged in unauthorised activities to obtain upfront payments of money from their victims, the majority of which they then failed to return. In addition, Mr. Abbas was found to have provided false information to the FSRA when being interviewed during the course of the investigation. These are serious acts of misconduct and warrant the severe penalties imposed in this matter, as well as the prohibition imposed on Mr Abbas to perform functions in ADGM.”

The FSRA acknowledges and thanks the Regulatory Authority (RA) of the ADGM for its close cooperation in relation to this matter.

The final Notices issued to each of Elia and Mr. Babar Abbas can be found here.

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About Abu Dhabi Global Market (ADGM)

Abu Dhabi Global Market (ADGM) is the international financial centre (IFC) of the capital city of the United Arab Emirates, opened for business on 21st October 2015. ADGM augments Abu Dhabi’s position as a leading financial centre and a business hub serving as a strategic link between the growing economies of the Middle East, Africa and South Asia and the rest of the world.

Operating within an international regulatory framework based on direct application of The English Common Law, ADGM governs the entire Al Maryah Island which is designated as the financial free zone of Abu Dhabi.

ADGM is ranked as one of the most preferred top IFCs in the Middle East and Africa region and named MENA’s largest Fintech hub. Its progressive and inclusive business ecosystem gravitates toward global financial and non-financial institutions while leveraging synergies between ADGM and multiple jurisdictions positioned as one of the world’s most advanced, diverse and progressively governed financial hubs.

For more details on ADGM, please visit www.adgm.com or follow us on Twitter and Instagram: @adglobalmarket and LinkedIn: @Abu Dhabi Global Market (ADGM)

For media queries please contact: 
Simon Hailes 
Head of Middle East  
Edelman Smithfield
E: simon.hailes@edelmansmithfield.com  
Hajer Altenaiji 
Head of Corporate Communications, ADGM 
E: media@adgm.com