The DFSA also said that had it not been for MAS ClearSight’s financial position and the DFSA’s decision to require MAS to pay compensation to the investors, it would also have imposed a financial penalty on the company.
In June 2015, the DFSA suspended MAS ClearSight’s license to stop it from conducting any financial services in the DIFC.
The regulator said that during 2010 to 2011 MAS ClearSight had been marketing investment opportunities in the production of limited-edition publications.
The company had told investors they would be repaid 100% of their initial investment, plus a further minimum return of 50% of their total investment.
“In fact, the publications have not been produced and the investors have not been repaid the amount of their initial investment or the returns they were promised. In July 2013, some of the investors complained to the DFSA about their investments through MAS,” the regulator said in a statement on Monday.
“The DFSA investigated the matter and found that MAS had promoted a Collective Investment Fund in a manner that did not comply with the applicable Laws and Rules. In addition, the investors were not properly treated as clients by MAS and were thereby excluded from receiving the other protections they were entitled to under the DFSA’s regulatory regime.”
MAS ClearSight promotes itself as a multi-line advisory service which specialises in investment banking, wealth management, aviation and asset management.