DFSA Fines Vault Wealth Dh401,000 Over Unauthorised DIFC Financial Services

The Dubai Financial Services Authority (DFSA) has imposed a Dh401,000 ($109,200) fine on wealth management firm Vault Wealth for conducting financial services in the Dubai International Financial Centre (DIFC) without authorization. Vault Wealth, which arranges deals and advises on investments and credit, is incorporated in Abu Dhabi Global Market (ADGM) and licensed by the Financial Services Regulatory Authority (FSRA), but has never been authorised by the DFSA.

The regulatory action relates to activities conducted between February and May 2024, during which Vault Wealth personnel operated from the DIFC office of an unregulated related entity, Vault Technology. Prospective clients were invited to the premises, where the firm provided financial advisory services, assisted clients with onboarding onto an investment platform, and collected know-your-customer documentation to arrange investment accounts.

The initial fine of Dh573,000 ($156,000) was reduced by 30 percent after Vault Wealth agreed to a settlement. Alan Linning, managing director for enforcement at the DFSA, stressed that authorisation from another regulator does not allow an entity to provide financial services in or from the DIFC, noting that enforcement will be taken whenever firms operate outside regulatory boundaries.