DUBAI
Dubai’s financial authority has accepted a constructive alternative to prosecution, commonly known as an Enforceable Undertaking (EU), from the Senior Executive Officer (SEO) of Royal Shield Limited (RSL).
RSL, which employed S Ravishankar Naidu, SEO, is an insurance company licensed by the Dubai Financial Services Authority (DFSA).
The regulator said in a statement on Monday that Naidu had failed to arrange re-insurance cover in accordance with a client’s instructions and allowed incorrect information to be provided to the client about their cover, in addition to failing to ensure that RSL’s financial statements for the financial year 2014 accurately reflected the financial position of RSL.
These violations resulted in the issue of an EU, which allows an alleged offender to voluntarily enter into a binding agreement to undertake tasks to settle a flouting of the law.
In addition to the EU, Naidu has been fined $70,000, of which $10,000 is due on June 6.
The rest is suspended, and will be payable should Naidu fail to comply with the EU.
According to the DFSA’s statement, in deciding to accept the EU offered by Naidu, the DFSA acknowledged that he had co-operated fully with the DFSA. Further, to resolve the DFSA’s concerns, Naidu has voluntarily undertaken to step down as RSL’s SEO and ensure that RSL appoints a new SEO.