FCA Imposes First MiFIR Transaction Reporting Fine on Infinox Capital: A Landmark Enforcement Action

FCA Imposes First MiFIR Transaction Reporting Fine on Infinox Capital: A Landmark Enforcement Action

Infinox Capital Limited is currently facing a significant challenge as the Financial Conduct Authority (FCA) has imposed a hefty fine of £99,200. This penalty stems from the company’s failure to submit over 46,000 transaction reports, a crucial requirement that could have allowed potential market abuse to go unnoticed.

Overview of the FCA’s Enforcement Action

This enforcement action marks a pivotal moment, as it is the first instance of a firm being penalized for non-compliance with the UK Markets in Financial Instruments Regulation (MiFIR) transaction reporting obligations. The issue arose when Infinox failed to report transactions for single-stock contracts for difference (CFD) trades conducted through a corporate brokerage account from October 1, 2022, to March 31, 2023.

Details of the Breach

The oversight, which involved more than 46,000 unreported transactions, was uncovered during a third-party review. Alarmingly, Infinox did not take the initiative to report this breach to the FCA; rather, it was the FCA that independently identified the discrepancy.

  • Period of Non-Compliance: October 1, 2022 – March 31, 2023
  • Number of Unreported Transactions: 46,053
  • Type of Transactions Affected: Single-stock CFDs

FCA’s Response and Ongoing Monitoring

Steve Smart, the joint executive director of enforcement and market oversight at the FCA, emphasized the critical need for timely and accurate transaction reporting, stating, “As a data-led regulator, it is vital that firms submit accurate and timely transaction reports and promptly bring any failures to our attention.” He highlighted that the failure to do so could jeopardize market integrity and allow market abuse to go undetected.

The FCA continues to actively monitor market data in real time, employing specialized teams dedicated to identifying misconduct and preserving market integrity. For more information, visit the FCA news page for updates on regulatory actions.

READ ALSO  Nexi and Klarna Join Forces to Enhance Merchant Payment Solutions Across Europe

For firms operating in the financial sector, this case serves as a stark reminder of the importance of compliance with MiFIR regulations. Understanding these obligations can help avoid severe penalties and maintain trust in the financial markets.

To learn more about regulatory compliance in the finance sector, check out our informative article on regulatory compliance.

Similar Posts

KYC Portal CLM Teams Up with PwC to Elevate Compliance and Risk Management Solutions

KYC Portal CLM Teams Up with PwC to Elevate Compliance and Risk Management Solutions

Bysupport

KYC Portal CLM has partnered with PwC UK and PwC Channel Islands to enhance client lifecycle management (CLM) solutions globally. This collaboration combines PwC’s expertise in financial crime prevention and regulatory compliance with KYC Portal’s innovative technology. The partnership aims to improve compliance challenges and operational efficiencies by utilizing PwC’s frameworks and KYC Portal’s no-code platform for automation. KYC Portal was chosen for its proven ability to streamline compliance and reduce costs. Leaders from both firms expressed enthusiasm about the partnership, emphasizing its potential to revolutionize compliance management in a rapidly evolving regulatory landscape.

Revolutionizing Bank Compliance: How Consilient's Federated AML/CFT Model is Leading the Charge

Revolutionizing Bank Compliance: How Consilient’s Federated AML/CFT Model is Leading the Charge

Bysupport

Traditional anti-money laundering (AML) systems are struggling against sophisticated financial crimes, with up to 95% of alerts being false positives, according to Consilient. These outdated systems result in operational inefficiencies, increased regulatory scrutiny, and eroded customer trust. The consequences include regulatory fines, reputational damage, and hindered threat response. Consilient’s innovative AML/CFT model uses machine learning to reduce false alerts by 88% and improve detection rates by 300%. Key features include federated machine learning for continuous adaptation, seamless integration with existing systems, and future-proof solutions that help financial institutions effectively combat crime and enhance compliance.

NEXT Insurance Enhances Underwriting Efficiency with ZestyAI's Innovative Solution

NEXT Insurance Enhances Underwriting Efficiency with ZestyAI’s Innovative Solution

Bysupport

ZestyAI has partnered with NEXT Insurance to transform small business insurance through AI-driven property risk insights. This collaboration enhances underwriting processes using ZestyAI’s models, Z-PROPERTY and Z-FIRE, which improve decision-making and streamline workflows. The integration promises a digital purchasing experience while maintaining high underwriting quality. NEXT Insurance aims to provide tailored insurance solutions, leveraging Z-PROPERTY for detailed risk analysis and Z-FIRE for wildfire risk assessment. Leaders from both companies emphasize the importance of AI in delivering actionable insights and enhancing efficiency, ultimately benefiting small business owners with better protection and pricing accuracy.

Over 40% of UK Financial Firms Unprepared for DORA Deadline: What It Means for the Industry

Over 40% of UK Financial Firms Unprepared for DORA Deadline: What It Means for the Industry

Bysupport

As the Digital Operational Resilience Act (DORA) compliance deadline approaches, nearly 43% of UK financial institutions are struggling to meet its requirements, according to a survey by Orange Cyberdefense. Many estimate needing at least three additional months for compliance, risking regulatory penalties. Key challenges include internal prioritization (28%), tight timelines (25%), skill shortages (24%), and poor supply chain visibility (23%). Despite these hurdles, 84% of institutions have adequate budgets, with many investing over €1 million in compliance efforts. Experts stress the urgency of DORA compliance to enhance cybersecurity and operational resilience in the financial sector.

Unlocking KYC Compliance: The Critical Role of Customer Success Strategies

Unlocking KYC Compliance: The Critical Role of Customer Success Strategies

Bysupport

Implementing a proactive Customer Success Programme is crucial for businesses using the KYC Portal, ensuring they exceed compliance objectives in a dynamic regulatory landscape. This program emphasizes regular client interactions to adapt the platform to evolving needs, optimizing workflows, integrating new features, and exploring advanced applications. The dedicated customer success team provides personalized support, enhancing efficiency and productivity. By actively monitoring client usage and soliciting feedback, KYC Portal addresses potential issues promptly. Committed to building long-term partnerships, the program includes continuous training and collaboration, empowering clients to scale effectively while navigating compliance complexities. Customer success is central to KYC Portal’s ethos.

ALT21 Secures $12.5 Million in Series A Funding to Revolutionize FX Innovation

ALT21 Secures $12.5 Million in Series A Funding to Revolutionize FX Innovation

Bysupport

ALT21, a financial technology company focused on foreign exchange (FX) transactions, has raised $12.5 million in an oversubscribed Series A funding round, bringing its total funding to $44 million. The round attracted a diverse group of super angel investors experienced in scaling global businesses, positioning ALT21 as a leading firm in Europe. The company utilizes high-frequency trading technology to automate FX processes, offering cost-effective and transparent solutions. With the new capital, ALT21 plans to accelerate global expansion, enhance its marketing strategy, and introduce new financial products. CEO Pritesh Ruparel emphasizes the need for transparency and efficiency in the FX market.