Dubai regulator orders GFS Investments to pay compensation to customers

08 September 2008
The regulator of Dubai International Financial Centre (DIFC) has ordered a foreign-exchange trading business to pay AED1.8m ($502,000) compensation to its customers.

Dubai Financial Services Authority (DFSA) also banned nine employees of GFS Investments, a US-based company, from working in the DIFC.

The regulator said that GFS Investments broke the terms of its licence by allowing retail investors to use its foreign exchange trading platform. GFS Investments has a licence which allows only professional investors to use its platform.

"We are disappointed by the unacceptable conduct of GFS Investments and our response should send a clear message that we will deal firmly with any firm that fails to maintain the standards required within this centre," says David Knott, chief executive officer of DFSA.

"The DFSA's intervention will also ensure that all investors who suffered financial loss as a result of the misconduct will be fully compensated," he says.

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