27 August 2007 — DFSA withdraws License from Forsyth Companies
Dubai, U.A.E., August 27, 2007: The Dubai Financial Services Authority (DFSA) today withdrew the license of Forsyth Partners Global Distributors Limited ("Forsyth") to carry on financial services activities in or from the Dubai International Financial Centre (DIFC) after it failed to meet the applicable regulatory capital requirements and was unable to demonstrate a capacity to remedy that breach. Forsyth consented to the DFSA’s withdrawal of its license.
The DFSA took this action following the issuance of a Notice to Forsyth on 22 August, 2007 requesting it to show cause why the DFSA should not withdraw its license.
The DFSA also withdrew the license of Forsyth’s subsidiary Forsyth Partners (Middle East) Limited ("Forsyth Middle East") at the request of Forsyth Middle East, which was also licensed by the DFSA to carry on financial services activities in or from the DIFC.
Both firms were Category 4 firms authorised to arrange credit or deal in investments and to advise on financial products or credit. Category 4 firms are not authorised to accept client money and therefore, withdrawal of the license does not place DIFC client funds at risk.