On 16 September 2012, Arqaam Capital, an emerging markets investment bank, and the international accountancy firm Ernst & Young (E&Y) agreed to pay fines of US$50,000 each to settle a case brought by the Dubai Financial Services Authority (DFSA), the regulator of the Dubai International Financial Centre (DIFC), before the Financial Markets Tribunal (FMT). The case related to breaches by Arqaam and E&Y of the DFSA's rules in the way Arqaam valued eight artworks in its 2009 financial statements. In addition to the fine, Arqaam has agreed to restate its 2009 accounts and the notes to its 2010 accounts within 28 days.
The DFSA had alleged that Arqaam and its auditors E&Y had contravened the DFSA regulations and International Accounting Standards in the way Arqaam valued eight artworks in its 2009 accounts. Arqaam had commissioned the artworks for US$200,000 in 2007, but valued them at US$2.45 million in the accounts. The DFSA was seeking a restatement of Arqaam's 2009 accounts which it said had overstated operating income and understated the loss for the year. Arqaam and E&Y contested the allegations, which led to the tribunal hearing.
Arqaam made an announcement following the settlement stating that various concessions were made by the DFSA. Arqaam also stressed that there was no allegation of dishonesty made by the DFSA against it.