DFSA Warns Public Over False Regulatory Claims by Souq Capital
The Dubai Financial Services Authority has issued a formal alert warning the financial services community and the public about false regulatory claims made by Souq Capital. According to the DFSA, the firm has been promoting itself as an authorised entity despite having no regulatory standing with the authority. The warning follows a review of representations made on Souq Capital’s website.
The regulator stated clahead that Souq Capital “is not, and has never been, Authorised by the DFSA.” It added that the firm falsely claims DFSA authorisation and is using a fabricated DFSA “Registration” number. Such misrepresentations are treated seriously by the regulator due to the risks they .
The DFSA has urged market participants to be aware that regulatory status must always be verified independently. False claims of authorisation can be used to create a sense of legitimacy, potentially encouraging consumers to engage with unregulated entities that fall outside the protections of the regulatory framework.
Why the Regulator Is Urging Extreme Caution
The DFSA has strongly advised the public not to respond to any communications from Souq Capital. The warning reflects concerns that firms falsely claiming may be involved in fraudulent or misleading activities, exposing consumers to financial loss with limited avenues for recourse.
Regulators globally have highlighted how scammers often misuse the names, logos, or registration numbers of well-known authorities to build trust rapidly. By issuing public alerts, the DFSA aims to disrupt these tactics and prevent further harm. The authority maintains a dedicated alerts page on its website where all such warnings can be reviewed.
The DFSA has also published broader guidance on common scam typologies, including clone regulatory claims. These resources are designed to assist consumers recognise warning signs ahead, particularly when approached by firms offering financial services or investment opportunities without verifiable regulatory credentials.
How Consumers Can Verify Authorisation and Report Concerns
The DFSA encourages consumers and market participants to consult its Public Register, which lists all firms and individuals authorised or licensed by the authority. Checking this register is one of the most effective ways to within the DIFC.
For those concerned about the authenticity of correspondence or documents purporting to come from the DFSA, the DIFC, or DFSA-regulated firms, the authority advises contacting the DIFC directly by telephone or submitting a report through the DFSA’s official complaints function. Prompt reporting can assist regulators in identifying and addressing potential misconduct more rapidly.
As financial services become increasingly digital and cross-border, regulators continue to stress the role of consumer vigilance. The DFSA’s latest warning serves as a reminder that regulatory status should never be taken at face value and that independent verification remains a critical first step before engaging with any financial services provider.
