DFSA slaps $33,220 fine on former Equitativa Chief Financial Officer

This action follows the DFSA’s Decision Notice, which revealed Ishak’s involvement in misleading statements and financial reporting irregularities related to Emirates REIT.

In December 2021, the DFSA had penalised Equitativa for misleading statements regarding Emirates REIT, failure to prepare financial statements in accordance with International Financial Reporting Standards (IFRS), and negligence in reporting critical information to auditors.

The investigation found that Ishak was knowingly involved in these breaches.

Moreover, in 2018, Ishak made public statements implying the acquisition of a new tenant for a school property, despite no binding offer or agreement at the time.

These statements misled stakeholders, as they suggested no impact on revenue or asset valuation, while the reality was different.

DFSA unveils penalties for CFO misconduct

In addition, Ishak approved Emirates REIT’s 2018 half-year financial statements without provision for unpaid rent, disregarding IFRS requirements.

As the CFO, Mr. Ishak was responsible for overseeing financial reporting and internal controls at Equitativa, ensuring relevant information was conveyed to auditors.

His failure to report crucial information regarding the school’s asset led to breaches of DFSA’s Principles for Authorised Individuals, particularly Principle 2, which requires diligence in fulfilling one’s role.

“CFOs of Public Funds and Listed Funds play a critical role in ensuring that financial statements and any associated public announcements are fair and accurate,” Ian Johnston, Chief Executive of the DFSA, said.

“CFOs need to ensure that all the facts relevant to the preparation of financial statements are provided to external auditors in a full and transparent manner,” he added.