Dubai Regulator Wins US$143,000 Legal Costs Award After Tribunal Ruling

The Dubai Financial Services Authority (DFSA) has been awarded around US$143,000 in internal and external legal costs by the Financial Markets Tribunal (FMT) after successfully defending a challenge brought by Al Ramz Capital LLC against a regulatory decision.

The award followed a reference filed by Al Ramz Capital challenging a DFSA Decision Notice issued on June 13, 2024. The DFSA said the case was the first time it had sought recovery of its internal legal costs in proceedings before the FMT.

The tribunal awarded the regulator all internal costs associated with Al Ramz Capital’s privacy application, along with 25 per cent of the internal costs claimed by the DFSA in relation to the main proceedings.

The DFSA said the ruling reflected the FMT’s acceptance of its arguments that certain aspects of Al Ramz Capital’s case had been pursued unreasonably.

The tribunal found that the firm had failed to narrow the issues at an earlier stage, advanced factual arguments with limited prospects of success, and raised a late-stage argument concerning the subjectivity of market abuse suspicions, rather than presenting it during the earlier DFSA decision-making process.

Alan Linning, Managing Director of Enforcement at the DFSA, said firms and individuals had the right to challenge enforcement decisions and seek privacy applications where appropriate.

“However, this decision makes clear that where a party pursues arguments unreasonably, or advances arguments it should know have no merit, it may be required to contribute to the DFSA’s costs in addition to paying any financial penalty imposed,” he said.

The ruling reinforces the FMT’s approach that parties involved in regulatory proceedings may face cost consequences where claims or arguments are considered unreasonable or without sufficient merit.

 
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