On 6 February 2026, UAE DFSA issued notice, USD 504,000 fine re market abuse.
- UAE DFSA imposed fine of USD 504,000 on Ark Capital Management (Dubai) Limited under art 90(2) Regulatory Law 2004 for having inadequate market abuse systems and controls, and for failing to notify DFSA of a proposed change in control; contraventions during relevant period (Oct. 4, 2021 - Jul. 9, 2024).
Overview
- UAE DFSA found that whilst ARK had systems in place to identify trading patterns consistent with market abuse typologies, it failed to give adequate consideration to alerts generated by those systems; in some instances did not promptly review them.
- As a result, DFSA considered ARK’s market abuse systems/controls were ineffective.
- This resulted in at least ten instances of trading that, were overlooked and not reported to the DFSA or not reported in a timely manner.
- ARK was also found to have failed to notify the DFSA of a proposed change in control.
- Although the change in control ultimately did not take place, an agreement had been entered into that meant an investor acquired 9.5% of ARK’s shares, with the option to increase that shareholding to 90% once certain conditions had been met.
- ARK mistakenly considered that because the initial shareholding acquisition fell below the 10% threshold which would have necessitated UAE DFSA’s approval, it was not required to notify the DFSA about the proposed change of control.
- ARK agreed to settle matter, receiving a 30% settlement discount; without discount, fine would have been USD 720,000; fine must be paid within 28 days of notice date.
- ARK agreed not to refer the matter to the Financial Markets Tribunal (FMT).
