Dubai Financial Services Authority said the broker manipulated insurance premiums and reinsurance documents over a period of several years.
Dubai: A reinsurance broker operating in the Dubai International Financial Centre (DIFC) has been banned from working in financial services in the centre after the regulator found he engaged in misleading and deceptive conduct over several years.
Dubai Financial Services Authority said it fined Wael Abdelmohsen Abdellatif Mohamed Emara, also known as Mohsen, $139,722 (Dh513,129).
The regulator added that the original penalty of $285,149 was reduced after he agreed to settle with the DFSA and requested a reduction based on financial hardship.
Dubai Financial Services Authority also prohibited him from holding office or working at any DFSA-authorised firm, and restricted him from performing any function related to financial services in or from the DIFC.
Alan Linning said: “The DFSA expects employees of Authorised Firms to observe the highest standards of integrity in carrying out Financial Services in or from Dubai International Financial Centre (DIFC).”
Alan Linning added: “In misleading and deceiving clients and reinsurers as he did, Mr Mohsen failed to meet those standards. The fine imposed on Mr Mohsen, along with the prohibition and restrictions, reflects the seriousness of his misconduct and serves as a warning to others against engaging in similar conduct.”
Wael Abdelmohsen Abdellatif Mohamed Emara previously held a senior role at Ed Broking (MENA) Limited, where he worked as a reinsurance broker helping insurance companies place risks with reinsurers.
Earlier this year, Dubai Financial Services Authority fined the company $455,176 for related breaches of DFSA rules.
According to Dubai Financial Services Authority, Wael Abdelmohsen Abdellatif Mohamed Emara misled insurers and reinsurers over a period of more than three years by quoting higher premiums to insurers and lower premiums to reinsurers for the same placements, with the difference allegedly retained by the firm as additional brokerage.
The regulator also said he informed reinsurers that deductions had to be made from premiums, but the deducted amounts were instead kept by the firm as brokerage. In another finding, the DFSA noted that one client received manipulated reinsurance documents showing higher premiums or lower brokerage and deductions.
The DFSA concluded that Wael Abdelmohsen Abdellatif Mohamed Emara “lacked integrity” and was not fit to work in financial services within the DIFC.
