Dubai regulator removes Tradition’s Trevor Conway’s license for “lack of competence”

Rick Steves

The Dubai Financial Services Authority (DFSA) has announced it withdrew the Authorised Individual status and imposed a restriction on Trevor Conway, a Senior Executive Officer at the DFSA-authorised firm Tradition, the interdealer broker arm of Swiss-based OTC interdealer broker Compagnie Financière Tradition SA. Trevor Conway lost his DFSA-authorised status following an investigation into his conduct […]

Nasdaq Dubai leads the world in sharia compliant securities

The Dubai Financial Services Authority (DFSA) has announced it withdrew the Authorised Individual status and imposed a restriction on Trevor Conway, a Senior Executive Officer at the DFSA-authorised firm Tradition, the interdealer broker arm of Swiss-based OTC interdealer broker Compagnie Financière Tradition SA.

Trevor Conway lost his DFSA-authorised status following an investigation into his conduct in relation to Tradition’s Commodity Murabaha Broking Desk.

The broking desk facilitated the purchase and supply of title to metal commodities (Warrants), sourced from suppliers for use by the Desk’s clients, who are mainly banks, to substantiate their Murabaha-based transactions with their respective customers.

Failures at “Murabaha” Broking Desk

Murabaha is an Islamic financing structure that works as a sales contract, fixing the price of goods or items as required by a customer, inclusive of a pre-agreed profit margin.

According to the DFSA, Tradition’s Commodity Murabaha Broking Desk made available Warrant numbers taken from Warrants they had previously used, thereby not providing its clients with current title to metal commodities. This lasted for two years and nine months.

The regulator also claims Trevor Conway was aware that holding Warrants representing title to metal commodities was a precondition for entering into Murabaha transactions by its clients and that the broking desk had not held any valid Warrants over the relevant period after losing its Warrant supplier.

The senior executive did not take steps to stop the misleading practice and failed to stop the desk from misrepresenting to a client that it had a supplier providing Warrants when, in fact, the supplier had ceased to provide them, the DFSA continued.

The abovementioned actions were considered by the DFSA as “lack of competence”. The regulator has decided to strip him from any licensed function as “he is not fit and proper to perform” such activities in connection with the provision of Financial Services in or from the DIFC.

Read this next

Industry News

CFTC wins case against broker for secretly taking other side of client orders in block trades

“As we said at the outset of this case, the illegal use of inside or confidential information undermines confidence in markets and will not be tolerated.”

Technology

BankiFi raises $4.8m to bring embedded banking platform to North America

“Our mission is to make all aspects of cash management and payments easier for SMBs everywhere, and this investment is another huge step to making that a reality.”

Executive Moves

Shieldpay hires ex-Payoneer Chris Andrews as Head of Sales

“We’ll be expanding our position in existing markets and accelerating growth into new verticals, whilst building on our direct and indirect channels.”

Digital Assets

Crypto.com secures preliminary approval to operate in Canada

Crypto.com, one of the longest-established crypto platforms, has become the first digital asset platform to sign a Pre-‘Registration Undertaking’ with the Ontario Securities Commission (OSC) in Canada.

Retail FX

CySEC hits IC Markets One with regulatory warning

The Cyprus Securities and Exchange Commission has once again stepped up its fight against unauthorized brokers.

Uncategorized

XTAGE now offers bitcoin and ether trading to 3.6M Brazilian investors

Brazilian financial services giant XP has officially launched its crypto trading platform XTAGE, which was built on major American stock exchange Nasdaq’s trading technology.

Institutional FX

FX volume drops 7pct at CLS Group in July 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in July.

Digital Assets

Web3 startup PIP integrates with Binance ecosystem

Web3 payment provider PIP has announced integration with the Binance ecosystem, which allows the firm to vastly develop and propose needed products and improvements that are worthy of competing with others chains.

Industry News

Celsius $750m insurance claims are fraud, says lawyer seeking EU crypto superfund

“It is an intentional deception in aid of a billion-dollar securities offering.”

<