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 […]

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

Uncategorized

US and South Korea seek extradition of Luna founder Do Kwon

Both US and South Korean officials are seeking to extradite Terraform Labs CEO Do Kwon, just hours after he was arrested in Montenegro.

Retail FX

Pepperstone UK doubles profit, client assets in 2022

The London-based entity of Australian FX broker Pepperstone has reported its financials for the fiscal year ending June 30, 2022. The group had outperformed the last year’s flat performance, having doubled revenues and boosted the broker’s bottom line and shareholders’ fortunes.

Institutional FX

CLS FX volume rises to just shy of $2 trillion in February

Foreign exchange settlement provider, CLS Group saw strong volumes in February 2023 as the banking crisis continues to weigh on a world economy that’s yet to fully recover from the Russia-Ukraine war’s shocks.

Digital Assets

Binance restores trading after 2-hour outage

Binance suffered a breakdown on its trading engine that lasted for about two hours, but the premier cryptocurrency exchange finally managed to restore normal operations at around 14:00 UTC.

Digital Assets

Tether earns $700 million in Q1, taking excess reserves to $1.6 billion

Tether chief technology officer Paolo Ardoino said the world’s largest stablecoin issuer expects to earn more than $700 million in the January-Mach quarter, which will be added to the reserve backing its stablecoin (USDT).

Digital Assets

Narwhal Finance Secures $1M in Seed Funding Led by Animoca Ventures

Narwhal Finance received strong support from Animoca Ventures and angel investors in a $1 million seed funding round, reinforcing the company’s vision of providing an accessible platform to all.

Technology

SteelEye tries ChatGPT for market surveillance

This capability can be used as a starting point for initiating a surveillance investigation and to standardize workflow processes to boost the throughput and consistency of cases. It is also useful when analyzing communications in foreign languages, as the system returns the above insights in English regardless of the languages being used.

Industry News

SEC charges ex-Morgan Stanley advisor of NBA players after $13m fraud

Darryl Matthew Cohen was arrested this week and is facing three different federal counts of fraud, which could amount to 20 years in prison if convicted, besides the SEC complaint. 

Industry News

AWS FinTech Africa Accelerator launched, applications until April 27, 2023

Founders will be offered tech resources, expert guidance, and a global network of industry leaders, technologists, entrepreneurs, investors, associations, and partners, in order to build their fintech products. 

<