FCA Warns Interactive Brokers UK Over Possible Client Breaches

The FCA warns Interactive Brokers over failure to report possible market abuse by its customers.

The Financial Conduct Authority (FCA) has issued a warning against Interactive Brokers UK (IBUK) for a lapse in reporting possible market abuse by its customers on three separate occasions in the period between 6 February 2014 and 28 February 2015.

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The FCA in its check found out that IBUK has breached Principle 3 of the FCA’s Principles for Businesses. Regarding this particular issue, the company failed to take reasonable care to organise and control its affairs responsibly and effectively with adequate risk management systems in relation to the identification and reporting of possible market abuse by its customers.

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The company failed to report financial transactions by its customers which displayed forms of market abuse such as insider dealing, in breach of rule SUP 15.10.2R, which was in force during said period.

In the warning letter, it mentioned that it does not consider IBUK’s senior management and other employees to have been aware of the shortfall in required standards by the firm’s systems until the visit by the FCA in December 2014.


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