“Compliance is not an incidental cost of doing business, it is a critical function that must be adequately resourced in terms of both number and quality of staff.” 

The Dubai Financial Services Authority (DFSA) has levied a fine of USD 1,368,767 (AED 5,023,375) on R.J. O’Brien (MENA) Capital Limited for several violations of DFSA legislation. These include inadequate compliance systems and controls.

The firm’s fine was reduced from USD 2,793,403 (AED 10,251,789) as it offered an Enforceable Undertaking (EU) to rectify the failings.

RJ O’Brien’s shortcomings exposed after acquiring a new brokerage

The DFSA identified shortcomings in the firm’s planning and analysis after acquiring an additional brokerage. Senior management was found aware of compliance resource deficiencies but failed to address them adequately, hindering the fulfillment of regulatory obligations.

While no deliberate contravention was detected, the DFSA emphasized the crucial need for authorized firms to allocate sufficient resources for compliance.

Patrick Meaney, Head of Enforcement at DFSA, stressed that compliance is not an incidental cost but a critical function requiring appropriate staffing and quality resources. “Authorised Firms must ensure that they have adequate compliance and other resources to be able to comply with their legal and regulatory obligations. Compliance is not an incidental cost of doing business, it is a critical function that must be adequately resourced in terms of both number and quality of staff.”

RJO, acknowledging the deficiencies, committed to remedy its systems, to engage an external compliance expert, and to ensure compliance with obligations.