DFSA censures finance officer

The Dubai Financial Services Authority, DFSA, has censured Mr. Prabhakar Kamath, a former Finance Officer of a DFSA Authorised Firm for submitting an inaccurate financial report to the DFSA.

Mr. Kamath, in his capacity as Finance Officer, was responsible for submitting the firm’s monthly financial reports to the DFSA, and its compliance with the DFSA’s Rules in relation to prudential requirements.

In June 2015, Mr. Kamath provided the DFSA with the firm’s monthly financial report for May 2015. The report was incorrect because it represented that the firm continued to meet the DFSA’s prudential requirements. In fact, the firm’s current account balance was significantly less than stated and, therefore, the firm was in breach of the DFSA’s prudential requirements.

Before Mr. Kamath submitted the financial report to the DFSA, a member of the firm’s senior management gave Mr. Kamath inaccurate information about the firm’s current account balance. However, Mr. Kamath failed to take steps to verify the balance of the firm’s current account. In particular, he did not obtain and review relevant bank statements.

The DFSA considers that Mr. Kamath breached the DFSA’s Principles for Authorised Individuals by failing to exercise sound judgment and diligence in performing the role of Finance Officer.

Following the conclusion of the DFSA’s investigation, Mr. Kamath accepted responsibility for his conduct and agreed to settle the matter at an early stage. While breaches of the DFSA’s Principles for Authorised Individuals have, in the past, resulted in a financial penalty, the DFSA concluded that a public censure is the most appropriate action given the circumstances of this matter. Mr. Kamath also cooperated fully with the DFSA’s investigation.

A copy of the DFSA’s Decision Notice given to Mr. Kamath can be found on the DFSA website under Regulatory Actions.