The move comes as part of efforts to uphold market integrity and safeguard investors against fraud
UAE’s Capital Market Authority (CMA) has announced on Wednesday imposing fines of Dh5.5 million on companies over unlicensed financial and investment activities, as part of efforts to uphold market integrity and safeguard investors against fraud and unlawful practices.
The CMA has called on investors to verify he licensing status of any financial entity through its official channels before engaging in any investment activity. It did not name the firms.
The penalties on the companies also included closing their headquarters and blocking their websites, the CMA has clarified.
Last month, the authority issued another warning to investors against dealing with unlicensed entities, trading platforms, and websites operating in the country. It flagged Wealth World Capital Investment LLC, operating under the name Arbitrage Prim, saying the platform is active in the UAE but is not licensed to provide financial services or carry out regulated investment activities.
The measure followed a similar warning on February 26, when the Capital Market Authority in the UAE alerted investors about Ethr.trading, an unlicensed company without official authorisation to conduct regulated financial activities. The authority made clear that it accepts no responsibility for any dealings involving the firm.
The CMA and the Securities and Commodities Authority (SCA) regularly issue such advisories to protect investors from companies operating without licences or outside the government’s regulatory standards. Engaging with such firms can leave investors vulnerable to fraud, financial loss, or misuse of personal information.
Source: Khaleejtimes
