Dubai regulator bans broker, fines him over Dh500,000 for misleading clients

Dubai: A reinsurance broker working in Dubai International Financial Centre (DIFC) has been banned from working in financial services in the centre after Dubai’s financial regulator found he engaged in misleading and deceptive conduct over several years.

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The Dubai Financial Services Authority (DFSA) said it fined Wael Abdelmohsen Abdellatif Mohamed Emara, also known as Mohsen, $139,722 (Dh513,129).

The regulator said the original fine was reduced from $285,149 after Mohsen agreed to settle with the DFSA and requested a reduction on grounds of financial hardship.

The DFSA also prohibited him from holding office or working at any DFSA-authorised firm. He has also been restricted from carrying out any function connected to financial services in or from DIFC.

Alan Linning, Managing Director of Enforcement at the DFSA, said: “The DFSA expects employees of Authorised Firms to observe the highest standards of integrity in carrying out Financial Services in or from Dubai International Financial Centre (DIFC)."

Linning added, "In misleading and deceiving clients and reinsurers as he did, Mr Mohsen failed to meet those standards. The fine imposed on Mr Mohsen and the prohibition and restriction imposed on him reflect the seriousness of his misconduct and serves to warn others against engaging in similar conduct.”

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Mohsen previously worked in a senior role at Ed Broking (MENA) Limited as a reinsurance broker. His role involved helping insurance companies place risks with reinsurance firms.

Earlier this year, the DFSA fined the company $455,176 for related breaches of DFSA rules.

According to the regulator, Mohsen misled insurers and reinsurers over a period of more than three years by quoting higher premiums to insurers and lower premiums to reinsurers for the same placements. The difference was allegedly retained by the firm as additional brokerage.

The DFSA also said he told reinsurers that deductions had to be made from premiums, but the deducted amounts were instead kept by the firm as brokerage.

In another finding, the regulator said one client received manipulated reinsurance documents showing higher premiums or lower brokerage and deductions.

The DFSA said it determined that Mohsen “lacked integrity” and was not fit to work in financial services within DIFC.