Regulations imposed by the Financial Services Regulatory Authority prohibit the offering of securities on the Abu Dhabi Global Market without an approved prospectus
Announce Abu Dhabi Global Market ,In today’s statement The Financial Services Regulatory Authority imposed a fine of $122,500 (450,000 dirhams) on a company licensed by the market, due to its violation of the regulations imposed by the Financial Services Regulatory Authority by offering securities on the Abu Dhabi Global Market without an approved prospectus.
The market stated that the Financial Services Regulatory Authority imposed on the company itself to conduct an independent review of governance mechanisms and measures.
The regulations imposed by the Financial Services Regulatory Authority prohibit the offering of securities on the Abu Dhabi Global Market without a prospectus approved by the Financial Services Regulatory Authority. The prospectus usually contains all the necessary information that the investor needs to make an informed investment decision in the offering.
An investigation conducted by the Financial Services Regulatory Authority showed that, during the period between April and May 2023, the company provided the opportunity to invest in securities linked to a number of shares of the parent company to its network of clients and users registered in its application.
The company did not provide an approved prospectus to potential investors, and therefore these potential investors did not obtain sufficient information to make an informed decision about this investment opportunity, as 144 investors participated in subscribing to the offering, committing a total amount of up to $2.1 million.
The company took the initiative to cancel all requests to participate in the subscription immediately after it was informed of the concerns of the Financial Services Regulatory Authority, and it also agreed to the settlement as soon as possible, which entitled it to obtain a reduction in the value of the financial penalty, and an additional reduction was granted in appreciation of the regulatory action taken by the Dubai Financial Services Authority.
Emmanuel Jevanakis, CEO of the Financial Services Regulatory Authority at the Abu Dhabi Global Market, said that this legal measure is tangible evidence of the strict regulatory approach followed by the Financial Services Regulatory Authority in implementing its regulatory framework, to ensure investor protection as a top priority, and to ensure the compliance of all companies subject to the Abu Dhabi Market’s regulations. Global standards of behavior are high.
