Dubai Financial Services Authority prohibits and fines reinsurance broker for misleading conduct
DIFC reinsurance brokers must evidence premium and brokerage accuracy
DFSA
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Change
Dubai Financial Services Authority fined and prohibited Mr Mohsen for misleading cedant insurers and reinsurers through premium, deduction and brokerage misstatements.
Why it matters
DFSA found that Mr Mohsen misled cedant insurers and reinsurers for more than three years while placing reinsurance risks. The enforcement action bars him from DFSA Authorised Firms and from performing financial-services functions in or from DIFC.
Implications
- — DIFC reinsurance brokers must maintain evidence that premium quotations, brokerage amounts and deductions match the terms shown to cedant insurers and reinsurers because DFSA treated mismatched placement information as misleading and deceptive conduct.
- — DFSA Authorised Firms must prevent prohibited individuals from holding office, employment or financial-services functions because DFSA barred Mr Mohsen from those roles after finding he lacked integrity and was not fit and proper.
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