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ADGM Financial Services Regulatory Authority fines Eshara Capital Ltd. for financial reporting violation

ADGM FSRA 16/04/2019

The Financial Services Regulatory Authority (FSRA) of AbuDhabi Global Market (ADGM) has imposed financial penalties on Eshara Capital Ltd (Eshara) and its Senior Executive Officer Mr Alexander David Guy for breaching financial and regulatory reporting requirements. Eshara was previously licensed by the FSRA to undertake regulated activities in the ADGM.

The FSRA found that Eshara failed, without reasonable excuse, to ensure that required audit reports and regulatory returns were submitted to the FSRA within the stipulated reporting timeframes. The breaching of fundamental financial and regulatory reporting requirements for an extended period of time in this case prevented the FSRA from accessing material information concerning the activities and financial resources of Eshara.

Any contravention of the FSRA’s rules and regulations are serious and carry disciplinary consequences.

In relation to these contraventions, the FSRA imposed a financial penalty of $10,000 on Eshara. A financial penalty of $10,000 was imposed on Mr Guy for his failing to ensure that Eshara complied with its relevant reporting requirements. 

As a financial services regulator, the FSRA has to maintain a transparent and well-regulated platform to ensure the robustness and integrity of the marketplace. Authorised Persons, including Senior Office Executives, must ensure that the firm for which they are responsible submits, amongst other things, audit reports and regulatory returns to the FSRA within specific timeframes. The FSRA expects all ADGM registered entities to carry out their duties and requirements as stipulated under FSRA administered regulations and rules.

A copy of the FSRA’S Final Notices to Eshara Capital Ltd and Mr Alexander David Guy can be found on the ADGM website here.

About Abu Dhabi Global Market 

Abu Dhabi Global Market (ADGM), an international financial centre (IFC) located in the capital city of the United Arab Emirates, opened for business on 21 October 2015. Established by a UAE Federal Decree as a broad-based financial centre, ADGM augments Abu Dhabi’s position as a global hub for business and finance and serves as a strategic link between the growing economies of the Middle East, Africa and South Asia and the rest of the world.

ADGM’s strategy is anchored by Abu Dhabi’s key strengths including private banking, wealth management, asset management and financial innovation. Comprising three independent authorities: ADGM Courts, the Financial Services Regulatory Authority and the Registration Authority, ADGM as an IFC governs Al Maryah Island which is a designated financial free zone. It enables registered financial institutions, companies and entities to operate, innovate and succeed within an international regulatory framework based on Common Law.

Since its inception, ADGM has been awarded the “Financial Centre of the Year (MENA)” for three consecutive years for its initiatives and contributions to the financial and capital markets industry in the region.*

For more details of ADGM, please visit www.adgm.com or follow us on Twitter: @adglobalmarket and Linkedin: ADGM

* Source : The Global Investor Middle East and North Africa (MENA) Awards

Rawand AlQadi
Rawand.alqadi@adgm.com
Tel: +0561779653