Cum-ex trading – the scandal that keeps on giving (although don’t tell anyone!!).
10/05/2021
The Financial Conduct Authority has fined boutique investment bank Sapien Capital £178,000 for failing to identify financial crime relating to cum-ex trading.
The case is the first by the regulator in relation to cum-ex trading, dividend arbitrage and withholding tax reclaim schemes.
Cum-ex trading involves
- Trading listed equities around their dividend date so that more than one party can claim withholding tax, a practice the FCA said is
- “Highly suggestive of sophisticated financial crime”.
The FCA said in a 6 May statement.
- Sapien Capital, which executed more than £6bn of trades in Danish and Belgian stocks for Solo Group, did not have
- “Adequate systems and controls” in place between 10 February 2015 and 10 November 2015,
the FCA’s final notice said
- “Sapien failed to exercise due skill, care and diligence in applying anti-money laundering policies and procedures and in failing properly to assess, monitor and mitigate the risk of financial crime in relation to clients introduced by the Solo Group and the purported trading,”
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As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.