FCA fines broker as investigations develop into cum-ex trading schemes

By Neasa MacErlean

The FCA has concluded its first disciplinary case in relation to cum-ex trading, dividend arbitrage and withholding tax reclaim schemes. Sapien Capital, based in central London, was fined £178,000 for “serious financial crime control failings” — in relation to securities trading totalling £6.3 billion carried out for companies based in the Cayman Islands and other entities. This case is one of “a number of ongoing and overlapping investigations” currently being conducted by the regulator.