The combined amount includes US$1 million in restitution to retail customers enrolled in fully paid securities lending programmes and fines of US$1.6 million for the firms’ related supervisory and advertising violations
The news follows regulatory approval regarding critical components of securities borrowing and lending — short selling can only function if a securities borrowing and lending programme is in place
The UK regulator ruled that the transactions were carried out in a way “that was highly suggestive of financial crime” and that the broker had failed to manage risk that it was being used to facilitate fraudulent trading and moneylaundering
This is the fourth penalty applied by the UK regulator and the largest that it has applied to date relating to div arb violations. MCM qualified for a 30% reduction under the Settlement Discount Scheme since it did not dispute the FCA's charges
In a public statement, the Attorney General, Chancellor Essam Issa Al Humaidan, indicated that he has appealed the ruling of the Dubai Court of Appeal refusing Denmark’s extradition request, with the case to be referred to the Court of Cessation
The UK financial regulator has fined The TJM Partnership slightly more than £2 million for control failures linked to cum-ex trading and money laundering
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