Broker fined for executing cum-ex trades despite use of external compliance consultants

The FCA has concluded its seventh successful action against cum-ex trading and withholding tax schemes.

By Neasa MacErlean

This case, in which Arian Financial LLP of St Mary Axe in London, has been fined nearly £289,000, is also the fifth involving transactions that had been introduced to firms by the Solo Group, in administration since 2016. Arian had no internal compliance officer but was being advised by two external sets of compliance consultants at the time. Due to Arian's "incomplete instructions" to the firms and the nature of its engagement with them, it failed to spot the numerous red flags later identified by the regulator.