Elmar Capital SPV Limited Fined USD 5000 for Purporting to Exceed the Scope of LicenceADGM RA 23/03/2021
The Registration Authority (RA) of Abu Dhabi Global Market has taken regulatory action against Elmar Capital SPV Limited (ECSL), fining it USD 5,000 for purporting to conduct controlled activities beyond the scope of its ADGM commercial licence.
ECSL was incorporated and licensed by the RA in December of 2019 to conduct the non-financial activities of a special purpose vehicle.
However, in 2020, a website, www.elmarcapital.ae, controlled by ECSL claimed that “Elmar Capital is a financial company Licensed by the Abu Dhabi Global Market authority under license number 3366” and that it was “a leading company in finance, managing and investing money, brokerage services between financial companies and international and local banks”.
These and further statements on the website suggested that ECSL was licensed in ADGM to conduct financial services, when in fact, it is not.
By improperly offering financial services in or from ADGM via its website, ECSL was purporting to carry on a controlled activity outside of the scope of its ADGM commercial licence issued by the Registration Authority.
In mitigation, ECSL promptly took down and then amended and republished its website after being contacted by RA staff about its misrepresentation.
Based on the above, the Registration Authority made a decision to fine the firm USD 5,000, which has been imposed by way of a Final Notice.
A copy of the Registration Authority’s Final Notice can be found on the ADGM website: