The Dubai Financial Services Authority (DFSA) announced today that it has issued a Decision Notice against Vedas International Marketing Management (Vedas Marketing) for unauthorized and misleading financial promotions related to the Multibank Group.
In a press release, the DFSA stated it imposed a fine of US$100,000 (AED367,000) on Vedas Marketing for promoting the Multibank Group to individuals in the Dubai International Financial Centre (DIFC) without proper authorization.
The DFSA found that Vedas Marketing engaged in deceptive practices by claiming that certain entities within the Multibank Group were regulated by the DFSA, even though none of these entities were actually regulated.
It is important to note that the DFSA has not made any allegations against the Multibank Group itself in this Decision Notice. The Multibank Group operates trading platforms.
On June 2, 2024, Vedas Marketing disputed the DFSA’s findings by referring the matter to the Financial Markets Tribunal (FMT). However, on July 22, 2024, the FMT decided to dismiss the referral due to Vedas Marketing not paying the necessary filing fee.
Ian Johnston, Chief Executive of the DFSA, commented, “Maintaining the integrity and reputation of the DIFC is one of our top priorities. The DFSA will take action against any firms that mislead the public about their regulatory status or location, and we will implement necessary measures to prevent such behavior.”
