Judgment has been published by the Financial Markets Tribunal in the Dubai International Financial Centre in the case of Cefaratti & Dalma Capital Management Limited v DFSA. Adam Temple of 3VB acted for the DFSA, both before the DFSA’s Decision Making Committee and in the FMT.
The DFSA issued Decision Notices against both Applicants on 19 October 2021, for misleading the regulator and failing to conduct Dalma’s business activities with due skill, care and diligence. In particular, the DFSA found that Mr Cefaratti and Dalma had provided false or misleading information to the DFSA and omitted to disclose that an individual had been trading at Dalma without any contract of employment or appropriate outsourcing contract being in place.
The FMT upheld most of the Decision Notices in respect of the contraventions (save for a conclusion that the relevant trader lacked experience and qualifications), but reduced the sanctions.
Dalma Capital Management Limited was fined USD 162,500 (reduced from USD 170,000).
Mr Cefaratti was also fined USD 162,500 (reduced from USD 300,000) and made the subject of a restriction and prohibition, suspended for 2 years on the terms of the sanctions order, under which Mr Cefaratti will cease to act as the Senior Executive Officer of Dalma. These sanctions were in place of the full restriction, prohibition and disposal direction set out in the DFSA’s Decision Notice.