Reference Case Number: FOI8628
Freedom of Information: Right to know request:
- How many investigations into cum-ex trades does the FCA have open currently?
- please split into company/individual
- How many investigations into cum-ex trades has the FCA opened in 2021?
- please split into company/individual
- How many investigations into cum-ex trades did the FCA open in 2020?
- please split into company/individual
FCA response:
We hold the information requested and will respond to each question in turn below. Before we do so, we would like to explain that Dividend arbitrage is not contrary to FCA rules. More details on our requirements for firms in relation to Dividend arbitrage can be found here[1].
For question 1, we currently have 18 open investigations into cum-ex trades and can confirm 12 of these are into firms and 6 of these are into individuals. The investigations into firms relate to potential breaches of financial crime systems and controls. Please see the published Final Notice[2] the FCA issued in respect of Sapien Capital Ltd[3], who were fined £178,000 (reduced from £219,1000 to reflect Sapien’s financial hardship) for failings which led to the risk of facilitating fraudulent trading and money laundering. This is the first FCA case in relation to cum/ex trading, dividend arbitrage and withholding (WHT) reclaim schemes. The publication of this Final Notice is part of a range of measures taken in connection with cum/ex dividend arbitrage cases and WHT schemes. This has involved proactive engagement with EU regulators and global law enforcement.
Finally, for questions 2 and 3 we can confirm there were no investigations opened in 2020 or 2021 into cum-ex trades.