Dubai Financial Services Authority (DFSA) has handed a fine of AED312,650 to Clements Dubai Limited (CDL) after an investigation found out that the company was involved in prohibited insurance activities.
The wholly owned subsidiary of Clements Worldwide is authorised by the DFSA to provide insurance mediation activities in the Dubai International Financial Centre (DIFC).
But the investigation, carried out in collaboration with Insurance Authority of the UAE, has revealed that, from January to July 2014, CDL breached DFSA’s rules, which restrict it from intermediating a contract of insurance for a risk situated outside of the DIFC. The company had made 21 such violations during the seven-month period.
DFSA said the fine includes the giving up of commissions earned by CDL from the prohibited activities.
“Intermediating direct insurance in the UAE (outside of the DIFC) is prohibited by DFSA-administered legislation and the UAE Federal Law. The DFSA will take appropriate action against firms in the DIFC that engage in any unlicensed insurance activities,” said Ian Johnston, chief executive of DFSA.
DFSA said it gave a discount to CDL as it had agreed to settle the fine at an early stage of the investigation. The original figure before the concession was AED375,040.97.