Human Error Prompted Plus500 Ltd to Appoint New Compliance Staff
The U.K. listed brokerage has appointed two new registered people according to its FCA registration page, both related to compliance
It was merely a couple of weeks ago, when Plus500 added two new registered people to the company’s Financial Conduct Authority (FCA) register page under the individuals list. Now according to an unnamed company’s representative it turns out that a human error that they have unearthed spurred them to undertake the enhanced documents review.
On April 28th, Francine West and Gareth Darbyshire were appointed as compliance officers. Francine West has been put in charge of money laundering reporting, while Mr. Darbyshire is currently serving as head of compliance. According to his LinkedIn profile he has previously been in charge of compliance for the U.K. and Europe at CMC Markets.
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The last position which his professional social media profile shows is at PricewaterhouseCoopers, where he is listed as Senior Manager of Financial Services Risk and Regulation. PwC of the company serving as auditor of Plus500 Ltd.
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Business Insider is quoting unnamed Plus500’s press representatives’ answers to several questions regarding the accounts freeze. According to them, the review was prompted by “hired compliance advisers in February”, who have “recommended undertaking this document verification project due to uncovering some human error.” Finance Magnates was unable to verify the claim of the unnamed press representatives.
Slower on-boarding?
The lengthier verification procedures that the company has adopted may affect the successful rate at which Plus500 (LON:PLUS) is on-boarding and retaining clients. One of the biggest costs for the firm is affiliate marketing. The relatively easy sign-up process has most certainly been a factor for opening an account with the broker.
In its annual report for 2014, the company reported that it on-boarded over 60,000 new clients, yet the total figure of active accounts has increased by 20,000 to 106,000. This is due to the relatively short life span of clients of the broker as most of the users who are trading with Plus500 are not experienced traders.
Shares of the brokerage are trading close to recent lows, currently 15% lower on the day trading at their lowest level since October 2014.
Whilst it is easy to place the blame on human error it should be noted that Plus 500 has been on boarding clients with a total disregard to UK AML laws for some time. The statements being made by Plus 500 are indefensible! Next stop a Criminal Suit followed by a hefty FCA fine. A very Healthy Balance sheet will be required!
Whilst it is easy to place the blame on human error it should be noted that Plus 500 has been on boarding clients with a total disregard to UK AML laws for some time. The statements being made by Plus 500 are indefensible! Next stop a Criminal Suit followed by a hefty FCA fine. A very Healthy Balance sheet will be required!
“With electronic verification being the know-your-customer (KYC) process of choice, the review found a human error related to processing some of the documentation and how it was uploaded, as some of the documents were unreadable.”
“A human error”, “some of the documentation”, seriously ?
So it was electronic and human error, how convenient, I see a fine being levied soon.
Perhaps they should change the electronic process, clearly it failed them and the poor investors, I guess it has to be electronic due to manpower needs but still, there must be a technological solution in this day and age that can actually do the trick in regards to KYC.
“With electronic verification being the know-your-customer (KYC) process of choice, the review found a human error related to processing some of the documentation and how it was uploaded, as some of the documents were unreadable.”
“A human error”, “some of the documentation”, seriously ?
So it was electronic and human error, how convenient, I see a fine being levied soon.
Perhaps they should change the electronic process, clearly it failed them and the poor investors, I guess it has to be electronic due to manpower needs but still, there must be a technological solution in this day and age that can actually do the trick in regards to KYC.
bye bye
bye bye