Dubai Regulator Bans Former Barclays Private Bankers
The Dubai Financial Services Authority (DFSA) has banned two private bankers from
carrying out financial services in or from the Dubai International Financial Centre
(DIFC).
The DFSA accepted Enforceable Undertakings from Ms. Vanita Chatterbhoj and
Ms. Sweta Nayar, former Barclays Bank PLC (Barclays) private bankers, for knowingly
misrepresenting the terms of financial products sold to their clients. Under the terms of the Enforceable Undertakings, Ms. Chatterbhoj is banned
from carrying out any financial services in or from the DIFC for a period of
three years. Ms. Nayar is banned from carrying out any financial services in
or from the DIFC for a period of six years. As part of their mis-selling, Chatterbhoj and Nayar provided their clients
with materially altered Barclays banking documents which falsely listed the
products as enjoying full capital protection when, in fact, they were only conditionally
capital protected. On the basis of the misrepresentations, 10 Barclays clients were induced to
invest in products unlawfully marketed by the women. Upon
discovery of the mis-selling, Barclays promptly referred the matter to the DFSA
and provided compensation to clients who were adversely affected. Mses. Chatterbhoj
and Nayar were also dismissed by Barclays for gross misconduct. In addition to mis-selling products to clients, Ms. Nayar also provided clients
with altered portfolio statements with inflated redemption values for products
she had sold them. During the course of the DFSA investigation, Ms. Nayar attempted to minimise
her involvement in the misconduct and obstructed the DFSA’s investigation
by knowingly making false and misleading statements to the DFSA. In addition to the Enforceable Undertakings, the DFSA imposed an administrative
censure against Ms. Nayar for knowingly obstructing the DFSA during the course
of an investigation. The censure is made under the provisions of the Regulatory
Law, and is filed as part of DFSA’s public record. David Knott, DFSA Chief Executive, stated: “One of the primary objectives
of the DFSA is to protect investors who deal with DIFC financial firms. These
two individuals betrayed the trust of Barclays and the clients who were misled.
This type of conduct is unacceptable within the DIFC." He concluded: "The DFSA is also sending a strong message that attempts to obstruct or
mislead the regulator will be regarded as a serious offence and result in additional
sanctions.” .
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