RegulationAug 16 2017

FCA issues warning on online broker firm

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FCA issues warning on online broker firm
ByDamian Fantato

The Financial Conduct Authority has published a warning about an online broker firm.

The warning notice is in relation to Interactive Brokers (UK) Ltd, the British arm of an American company called Interactive Brokers which offers low-cost online trading.

It claims the company breached FCA rules by failing to take reasonable care to organise its affairs responsibly and effectively with adequate risk management systems in relation to market abuse.

According to the regulator, Interactive Brokers failed on three separate occasions to identify and report to the FCA transactions which it had reasonable grounds to suspect amounted to market abuse in the form of insider dealing.

The regulator concluded that neither IBUK’s senior management nor its other staff were aware that its systems and controls fell sort of its requirements.

The FCA emphasised that the warning notice was not a final decision and the regulatory decisions committee will decide what action will be taken, if any.