The Dubai Financial Services Authority (DFSA) has fined Vault Wealth Dh401,000 (about $109,200) for providing financial services without authorisation inside the Dubai International Financial Centre (DIFC). Vault Wealth is incorporated in Abu Dhabi Global Market (ADGM) and licensed there by the Financial Services Regulatory Authority (FSRA). Between February and May 2024, the firm operated from a DIFC office without DFSA clearance. During that period, its staff gave investment advice to clients, helped them onboard onto an investment platform, and collected know-your-customer documentation through a related, unlicensed entity called Vault Technology.
The original penalty was set at Dh573,000, but it was reduced by 30 per cent to Dh401,000 after Vault Wealth agreed to settle with the DFSA rather than contest the finding.
Alan Linning, the DFSA's managing director for enforcement, said authorisation granted by one regulator does not entitle a firm to conduct financial services in or from the DIFC. The remark underlines a recurring theme in DFSA enforcement cases: licensing in another UAE free zone, including ADGM, does not substitute for a dedicated DFSA permit when a firm's staff or operations touch DIFC soil.
The case is the latest in a series of DFSA actions targeting firms that provide investment-related services from the DIFC without the proper licence. Regulators across the UAE's financial free zones have stepped up scrutiny of investment advisers and wealth managers this year, aiming to tighten compliance and strengthen investor protection as Dubai's financial sector continues to expand.