Monday, December 5 2022

The Dubai Financial Services Authority (DFSA) has announced that it is withdrawing the authorized individual status and imposing a restriction on Trevor Conway, a senior executive of the DFSA-approved company Tradition, the inter-dealer arm of inter-dealer OTC based in Switzerland Compagnie Financière Tradition SA. Trevor Conway lost his DFSA cleared status following an investigation into his conduct […]

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The Dubai Financial Services Authority (DFSA) has announced that it is withdrawing the authorized individual status and imposing a restriction on Trevor Conway, a senior executive of the DFSA-approved company Tradition, the inter-dealer arm of inter-dealer OTC based in Switzerland Compagnie Financière Tradition SA.

Trevor Conway lost his DFSA clearance status following an investigation into his conduct in connection with Tradition’s Murabaha Commodity brokerage.

The brokerage office has facilitated the purchase and provision of metal commodity titles (warrants), sourced from vendors for the use of the office’s clients, which are primarily banks, to substantiate their Murabaha-based transactions with their clients respective.

Murabaha is an Islamic financing structure that works like a sales contract, fixing the price of goods or items according to a customer’s needs, including a pre-agreed profit margin.

According to the DFSA, Tradition’s Commodity Murabaha Broking Desk made available warrant numbers taken from the warrants they had previously used, thus failing to provide its customers with current title to metal commodities. It lasted two years and nine months.

The regulator also says Trevor Conway was aware that holding warrants representing title to the metal products was a condition precedent to his clients entering into Murabaha transactions and that the brokerage did not hold any warrants. valid warrant during the relevant period after losing its warrant provider.

The senior executive failed to take steps to stop the deceptive practice and failed to prevent the office from misrepresenting to a client that it had a vendor supplying warrants when, in fact, the supplier had stopped providing them, the DFSA continued.

The aforementioned actions were deemed by the DFSA to be a “lack of jurisdiction.” The regulator has decided to strip him of any authorized function as “he is not fit and proper to perform” such activities in relation to the provision of financial services within or from the DIFC.

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