A joint feedback statement from the FCA and PSR assesses the usage and impact of digital wallets. The use of digital wallets has rapidly grown in recent years with the proportion of card transactions using a digital wallet increasing significantly from 8% in 2019 to 29% in 2023.Given the growth, the FCA and PSR engaged extensively with businesses and representative groups to assess the impact of digital wallets, finding significant benefits to consumers through greater convenience, enhanced security measures, and, for some, greater financial inclusion.We also heard concerns, including improvements needed to enable competition among digital wallet providers and allowing new players to enter the market, bolstering innovation. In turn, this could expand the range of alternative payment methods on offer, giving consumers more choice.We undertook the work to assess the potential impact of the growth of digital wallets. On the competition concerns heard, to avoid regulatory duplication, we have shared our findings with the Competition and Markets Authority (CMA). The CMA is currently investigating the two largest digital wallet providers, Apple and Google, in respect of their mobile ecosystems.We will also engage with the Treasury as part of our review of the Payment Services and Electronic Money Regulations to ensure the regulatory framework is future-proof.We will continue to embrace digital improvements that benefit consumers. This includes progressing work on open banking and contactless payments to boost competition and enhance the UK’s growth and competitiveness. These efforts align with the National Payments Vision of a modern, resilient, and innovative payments landscape that supports the evolving needs of consumers and businesses.

The Accelerated Settlement Taskforce report provides a set of recommendations for the UK to move to a T+1 settlement cycle by 11 October 2027. On 6 February 2025, the Accelerated Settlement Taskforce published its final report recommending a detailed implementation plan for the UK to move to a T+1 standard for settling securities trades.We have welcomed the recommendations, alongside the government and Bank of England. We support the transition to T+1 settlement in UK markets and call on industry to engage and start planning as soon as possible.FCA chief executive, Nikhil Rathi, said:'We highlighted how the move to T+1 will make our markets more efficient and support growth in our recent letter to the Prime Minister. We will support industry as they move to T+1 and expect firms to engage and plan early.'For further information on T+1, please visit our T+1 webpage.

The FCA has fined Mako Financial Markets Partnership LLP (Mako) £1,662,700 for failing to ensure it had effective systems and controls to guard against financial crime. Mako also failed to adequately apply the policies and procedures it did have in place.This eighth enforcement case brought by the FCA, concludes its investigations into cum-ex trading. Working closely with EU and global law enforcement agencies, the FCA has imposed fines of more than £30m in relation to this trading.Between December 2013 and November 2015, Mako executed purported over-the-counter equity trades on behalf of clients of the Solo Group, worth approximately £68.6bn in Danish equities and £23.6bn in Belgian equities. Mako received commission of approximately £1.45m.The trading was circular, which is highly suggestive of financial crime. It appears to have been carried out to allow the arranging of withholding tax (WHT) reclaims in Denmark and Belgium. Several individuals have now been convicted in Denmark as part of this scheme.Mako additionally failed to identify red flags in other instances related to the Solo Group business. This involved a series of transactions which had no obvious rationale, and which resulted in the Solo Group’s controller incurring a €2m loss, to the benefit of his business associates. Mako also received payment from a United Arab Emirates-based third party connected to the Solo Group for outstanding debts owed by the Solo Group’s clients without performing any due diligence which created an increased risk of money laundering.Therese Chambers, joint executive director of enforcement and market oversight, said: ‘Mako failed to spot clear red flags and facilitated highly suspicious trading that made it vulnerable to being used to support financial crime.‘For UK financial services to grow and compete, investors need to have trust in it. That’s why it is vital we stamp out these unacceptable practices which risk the reputation and integrity of UK markets.’As Mako has not disputed the FCA’s findings and agreed to settle, it qualified for a 30% discount on its fine under the FCA’s settlement discount scheme. Notes to editorsFinal Notice: Mako Financial Markets Partnership LLPThis is the eighth and last enforcement case brought by the FCA in relation to cum-ex trading. The previous 7 FCA cases relating to cum-ex trading include in May 2021 – Final Notice: Sapien Capital Ltd; November 2021 – Final Notice: Sunrise Brokers LLP; July 2022 – Final Notice: TJM Partnership Limited (in liquidation); June 2023 – Final Notice: ED&F Man Capital Markets Ltd; July 2023 – Final Notice: Bastion Capital London Ltd; September 2023 – Decision Notice: Nailesh Teraiya; and January 2025 – Final Notice: Arian Financial LLP. Nailesh Teraiya has referred his Decision Notice to the Upper Tribunal. Any findings in his Decision Notice are therefore provisional and reflect the FCA’s belief as to what occurred and how it considers his behaviour should be characterised.The Solo Group consists of 4 previously authorised firms: Solo Capital Partners LLP, West Point Derivatives Ltd, Old Park Lane Capital Ltd and Telesto Markets LLP.The ‘Solo clients’ means entities introduced by the Solo Group to Mako and the other broker firms, on some of whose behalf Mako executed purported equity trades during the relevant period.Cum-ex trading involves trading of shares on or just before the last cum-dividend date. If in a suitable jurisdiction this can then allow a party to claim a tax rebate on withholding tax, sometimes without entitlement.The intention of dividend arbitrage trading (of which cum-ex is an example) is to place shares in alternative tax jurisdictions around dividend dates, with the aim of minimising withholding tax or generating withholding tax reclaims. This may involve several different trading activities including trading and lending securities and trading derivatives, designed to hedge movements in the price of the securities over the dividend dates.Withholding tax (WHT) is a levy deducted at source from income and passed to the government by the entity paying it. Many securities pay periodic income in the form of dividends or interest, and local tax regulations often impose a withholding tax on such income. In certain cases where WHT is levied on payment to a foreign entity it may be reclaimed if there is a formal treaty, called a double taxation agreement (DTA), between the country in which the income is paid and the country of residence of the recipient. DTAs allow for a reduction or rebate of the applicable WHT. The FCA publication of Market Watch 52 highlighted various issues and concerns around dividend arbitrage in 2017. The FCA contributed to the European Securities and Markets Authority's Final Report on Cum-Ex, Cum-Cum and WHT in 2020.Mako breached Principle 2 and Principle 3 of the FCA’s Principles for Business between 16 December 2013 and 16 November 2015.Principle 2 states that ‘a firm must conduct its business with due skill, care and diligence’.Principle 3 states that ‘a firm must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems’.Read the FCA’s enforcement information guide.Find out more information about the FCA.

On 10 February 2025, Nvayo Limited (Nvayo) entered special administration. Dane O’Hara, Alex Cadwallader and Andrew Poxon, all of Leonard Curtis (UK) Limited, were appointed as administrators. Nvayo is authorised by the FCA to issue electronic money (e-money) and provide payment services.Nvayo issued e-money in multiple currencies via e-wallets and pre-paid cards (Aurae Lifestyle and ClubSwan), to its customers.On 8 August 2023, we told Nvayo it could not carry out any e-money services without our consent. We did this because we had serious concerns about Nvayo and its compliance with anti-money laundering rules.Read the restrictions on our Financial Services RegisterIn February 2024, the Upper Tribunal dismissed Nvayo's application to suspend the restrictions we placed on it.The directors of Nvayo applied to court to place it into special administration because they concluded that the firm was insolvent.The administrators will carry out an assessment of the protected client money held with Nvayo. The administrators are responsible for managing customer claims and returning funds back to customers, where possible. Customers should receive more information from them, including details on how to make a claim, within 8 weeks of appointment.Who to contactCustomers should contact the joint special administrators at Leonard Curtis (UK) Limited for further information:Email: Nvayo@leonardcurtis.co.ukTelephone:0161 660 0579Webpage: www.leonardcurtis.co.uk/case/NvayoPlease beware of scams: the joint special administrators will not call customers directly by phone.

The FCA has charged Mrs Lisa Campbell with multiple criminal offences, including fraud by abuse of position and providing false or misleading information to the FCA to conceal her wrongdoing. Mrs Campbell was the sole director of Campbell & Associates Independent Financial Advice Ltd (Campbell & Associates), an FCA authorised financial advisory firm which operated under the name Campbell & Raffle Independent Financial Advice Ltd until November 2020. The firm provided financial advice on investments, insurance, and pensions, but was not authorised to hold or control client money.The FCA alleges that between 1 April 2013 and 10 May 2023, Mrs Campbell misappropriated funds from clients on numerous occasions. The allegations include that Mrs Campbell created multiple false documents which she used to falsely reassure her clients that their money had been invested. In addition, the FCA alleges that Mrs Campbell provided false documents to the FCA in an effort to conceal her criminal behaviour.During the period, the FCA alleges that Mrs Campbell stole more than £2.3m, leading to significant financial losses for multiple victims, including family members, friends and a vulnerable child.Mrs Campbell has been released on bail and will appear at Portsmouth Magistrates Court on 17 April 2025.Therese Chambers, joint executive director of Enforcement and Market Oversight, said:‘Mrs Campbell’s actions are a betrayal of trust on a massive scale. We allege she used her position to defraud clients out of millions, including vulnerable people and her own friends and family who relied on her for advice, using falsified documents to cover up her lies.'We are determined to hold her accountable for her actions.'Notes to editorsLisa Maureen Campbell was born on 6 January 1970.This case took 24 months from opening in February 2023 to bringing criminal charges – compared to an average of 42 months for cases closed in 2023/24. This is an example of how the FCA is improving the pace of its enforcement investigations.Fraud by abuse of position is an offence under sections 1 and 4 of the Fraud Act 2006 (6 offences).Knowingly providing false information in purported compliance with a requirement imposed under the Financial Services and Markets Act 2000 is an offence under section 177 of the same Act.Campbell & Associates held FCA permissions from 4 October 2013 until 9 February 2023On 9 February 2023, the FCA issued a First Supervisory Notice to Campbell & Associates, requiring the firm to cease regulated activities, notify customers and platform providers of the restrictions, and retain assets held by the firm.On 3 April 2023, due to concerns that Mrs Campbell had not complied with restrictions imposed on the firm on 9 February 2023, the FCA imposed conditions preventing Mrs Campbell from performing any activity for which she has approval without the FCA’s written consent.The FCA has been working with Hampshire Police in this investigation, which included Mrs Campbell’s arrest and the seizure of evidence.Consumers who believe they may have had funds misappropriated by Campbell & Associates or Lisa Campbell can contact the FCA.

Nearly 20,000 financial promotions were withdrawn or amended in 2024 following intervention from the FCA - nearly double the amount in 2023. The regulator has highlighted concerns with cryptoasset, debt solutions, and claims management company (CMC) promotions. 9,197 CMC promotions were withdrawn in 2024. Many of these promotions were related to housing disrepair and motor finance claims targeted at vulnerable consumers.The FCA continues to urge social media platforms to do more to proactively identify and prevent illegal financial promotions. Last year, the FCA launched targeted action against ‘finfluencers’, resulting in 20 people being interviewed under caution.Lucy Castledine, Director of Consumer Investments at the FCA, said:'Over the past year, we have seen a growing number of misleading and illegal financial promotions. We have stepped up our efforts in response to make sure that financial promotions are clear, fair, and accurate.'We expect firms to take the necessary steps to meet standards and will continue to work with other bodies, including social media platforms, to prevent illegal promotions being pushed at consumers.'The FCA has strengthened rules around financial promotions, including the introduction of the Section 21 Gateway, which now requires firms to obtain FCA permission before approving promotions for unauthorised persons.The FCA also issued 2240 warnings about unauthorised or potentially scam firms in 2024. Consumers are encouraged to visit the FCA to report scams.Notes to editorsFinancial promotions data 2024A total of 19,766 financial promotions were amended or withdrawn in 2024, a 97.5% increase compared to 2023.FCA’s action resulted in the withdrawal of promotions from 46 authorised CMC firms, affecting 9,197 promotions.The Section 21 Gateway requires firms to obtain FCA permission before approving promotions for unregulated persons.20 finfluencers were interviewed under caution in 2024 following illegal financial promotions on social media.

The FCA has today written to people who complained about the way the FCA handled the Blackmore Bonds case. Blackmore Bond PLC (Blackmore) was an unregulated firm that raised funds by issuing mini-bonds. Two regulated firms, NCM Fund Services (NCM) and Northern Provident Investments (NPI), approved the financial promotions for the mini-bonds.The FCA conducted thorough enforcement investigations into NCM and NPI and decided that the financial promotions were largely accurate and contained very relevant risk warnings to consumers, so it did not take enforcement action against either firm.Complainants have raised a number of different issues about the FCA’s action surrounding Blackmore – including that the FCA failed to act following warnings about the firm, failed to protect investors and allowed misleading marketing.Investors asked the FCA to pay compensation and start a criminal investigation into Blackmore.The FCA has carefully considered the complaints and decided not to uphold them. The FCA never had any supervisory oversight of Blackmore, handled intelligence received about the firm appropriately and found previously that the financial promotions were largely accurate and contained relevant risk warnings.The FCA will make a payment of between £150 and £250 to each complainant in recognition of how long it took to respond to the complaints.Read the full details of the FCA decision.

Speech by Emily Shepperd, chief operating officer, at the 10th Annual Culture and Conduct in Financial Services Summit.

The FCA has secured a confiscation order of £586,711.01 against Mohammed Zina, a convicted insider dealer. The order must be paid within 3 months, or Mr Zina will face a further 5 years in prison. The confiscation order amounts to all of Mr Zina’s available assets.Therese Chambers, the FCA’s joint executive director of enforcement and market oversight said: 'Insider dealing harms the integrity of our markets. As well as prosecuting insider dealers, we will not allow them to keep any part of their illicit profits. We have confiscated the entirety of Mr Zina’s assets, demonstrating that crime does not pay.’Between 2014 and December 2017, Mohammed Zina worked as an analyst at Goldman Sachs International (Goldman Sachs), joining its Conflicts Resolutions Group in 2016. In that role he came into possession of inside information relating to potential mergers and acquisitions his employer was advising on.Between 15 July 2016 and 4 December 2017, Mr Zina dealt in 6 shareholdings using this inside information. The total returns from trading in these stocks was approximately £140,486.The trading was partly funded by 3 loans, fraudulently obtained from Tesco Bank, totalling £95,000.In February 2023, Mr Zina was convicted of all 9 offences and sentenced to 22 months' imprisonment. Notes to editorsThe confiscation order was made on 29 January 2025.We previously published details of the defendant’s conviction and sentenceMr Zina has 3 months to pay the amount in full. Should he not do so he is liable to be sentenced to a further 5 years in prison and once released will still be liable to pay it in full, with interest. We will seek to enforce this against any available assets. The Proceeds of Crime Act 2002 allows ‘benefit’ of crime to be calculated as all property obtained in the course of the criminal conduct. The calculation of Mr Zina’s benefit from insider dealing represents the total gross value of the shares when sold rather than merely the profits achieved.The court found Mr Zina’s benefit across all his offences, including fraud, to be £1,091,424.72, when adjusted for inflation. The proceeds are adjusted for inflation to reflect the value as at the time of the order, i.e. in 2025, and therefore the sums involved include an uplift.The 6 shareholdings Mr Zina dealt in using inside information were: Arm Holdings plc, Alternative Networks plc, Punch Taverns plc, Shawbrook plc, HSN Inc, and Snyder’s Lance Inc.

The FCA has secured a confiscation order of £5,963,376.15, against convicted fraudster Guy Flintham. Mr Flintham is serving a 6-year prison sentence having pleaded guilty to fraud by false representation. The fraudulent investment scheme operated by Mr Flintham took £19m from over 240 investors.He made several fraudulent claims to investors, including about how the scheme was operated and the profits they were making. He falsified documents to support his claims.The court determined that Mr Flintham’s criminal benefit was £23,932,204.84, with the confiscation order amount being owed a £5,963,376.15, based on the court’s findings as to his available assets. The confiscated funds will be distributed to the victims of his crimes.The court has imposed a default prison sentence of 2 years on Mr Flintham, meaning that if he does not satisfy the terms of the confiscation order within 3 months, he will serve this further term of imprisonment in addition to the 6 years he is already serving.Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: 'Mr Flintham deliberately lied and misled people, causing them serious harm. This order sends a signal to anyone who engages in fraud – your ill-gotten gains are not safe even when you’re behind bars.’The FCA will now contact the identified victims of Mr Flintham’s fraud to provide further information.Notes to editorsGuy Flintham’s date of birth is 7 July 1977.Guy Flintham pleaded guilty to fraud by false representation contrary to section 1 of the Fraud Act 2006.The court further ordered that the sums confiscated from Guy Flintham are used to compensate the identified victims.Find out more information about the FCA.

The FCA has set out proposals to make it easier for listed companies to issue corporate bonds that wealth managers and retail investors can buy. The FCA is consulting on a single standard for corporate bond prospectuses, covering both large and small (less than £100,000) bond sizes. This would reduce costs and barriers for companies raising capital and give investors the information they need to make an informed decision.The aim is to encourage companies listed on stock exchanges to offer bonds in smaller sizes, improving investment opportunities for wealth managers and retail investors. More flexible and cheaper capital raising should help UK listed companies to grow.The FCA is also proposing to simplify the requirements that apply to listed companies when they issue further securities. Among other changes, the FCA is proposing to streamline the process by cutting red tape.The new public offer platforms will offer an alternative route for companies to raise capital, including from retail investors, and promote scale-up capital raising for smaller companies.It will enable companies to make larger offers of shares or bonds to a broad investor base outside of public markets via an authorised firm, similar to crowdfunding platforms. Having clear and consistent requirements for firms, and setting out what firms need to become authorised, will build confidence in the new platforms and enable firms to access a wider pool of investors.Simon Walls, interim executive director of markets at the FCA, said:'We’re opening the door for corporates to issue bonds in small sizes so that a wider range of investors can invest in them. That’s more funding for companies, more easily, and more choice for investors too.'We want to make sure investors have the information they need to make informed decisions about risk while removing unnecessary costs and widening access.'The FCA recently set out proposals for a new private stock market, PISCES, on which shares in private companies will be bought and sold. This follows the FCA’s wide-ranging reforms to the UK’s world-leading markets to boost competitiveness, including:helping a wider range of companies to list on a UK exchangemaking it cheaper and easier for companies to raise money in the UKgiving asset managers greater freedom in how they pay for investment researchopening the Digital Securities Sandbox so firms can test innovative new technologiesdelivering a plan for regulating cryptoassetsNotes to editorsCP25/2: Consultation on further changes to the public offers and admissions to trading regime and the UK Listing Rules.CP25/3: Consultation on further proposals for firms operating public offer platforms.These consultations follow the more comprehensive proposals set out in July 2024. In CP24/12 and CP24/13 we consulted on the main proposals for a new prospectus regime, to follow our listing rules reform, to be in place by summer 2025. In those consultations we indicated we would set out further proposals on disclosure requirements for low denomination bonds and the application process for further issuance, with a view to finalising rules around the same time.FCA rules, in conjunction with the Public Offers and Admissions to Trading Regulations 2024, will replace the UK Prospectus Regulation in due course.Comments on the proposals for the POATRs and the public offer platforms should be sent to the FCA by 14 March 2025. We expect to make final rules in this area by summer 2025 subject to approval by the FCA Board and for rules to take effect by early 2026.

On 30 January 2025, CFSL (also known as Solaris EMI) entered special administration. Joshua James Dwyer and Robert Spence of Interpath Limited have been appointed as Joint Special Administrators. The Court decided to place CFSL into special administration on application by its directors. Joshua James Dwyer and Robert Spence of Interpath Limited were appointed as special administrators of CFSL.CFSL is authorised by the FCA to issue e-money and provide payment services. E-money firms like CFSL appoint distributors to distribute and redeem e-money. CFSL remains responsible for the activities of its distributors. The customers of the following distributor programmes are impacted by CFSL entering special administration:TrilogyFfreesNaga PayCFSL transferred the distributor programme Engage to Suits Me Limited before it entered special administration. Customers of Engage that were transferred to Suits Me Limited are not impacted by the special administration.The special administrators are responsible for managing customer claims against the firm and returning funds back to customers where possible. The special administrators will provide a report to creditors within 8 weeks of their appointment.For updates, customers should visit the special administrators’ dedicated portal.Please beware of scams. The special administrators will not call customers directly by phone.Customers can also contact our Consumer Helpline: 0800 111 6768.

The FCA and Practitioner Panel survey is being sent to all regulated firms so they can share their feedback on how the FCA regulates the industry. The survey is carried out on our behalf by Verian (formerly known as Kantar Public), an independent social research organisation.For the first time, the survey will be sent out to all regulated firms allowing us to capture an even wider range of feedback.We use the survey results to better understand issues affecting firms and to assess any changes we should consider making so we can operate more efficiently and effectively. The survey is one of several sources of feedback used to evaluate our performance against key areas of our 3-year Strategy.The results are presented to the Practitioner Panel and our Board and will be published in summer 2025.Responding to feedback from last year’s surveyWe have listened to the feedback from last year’s survey and are taking actions including:Delivering new measures to support growth, including the overhaul of UK listing rules, the reform of UK retail disclosure rules, changes to the remuneration regime with the PRA, proposals to provide better value for money for workplace pension savers, and the launch of our AI Lab to support innovators.Looking at how we can streamline our rulebook following our call for input asking for views on where we can simplify our retail conduct rules and guidance.Continuing to make it easier for firms to supply data to us, including creating a new firm portal, My FCA, due to launch in Spring 2025 and reviewing our regular data returns to ensure we still require the data we are asking for.In line with the Market Research Society Code of Conduct, Verian treats all survey responses in the strictest confidence. Personal information will not be published or shared with the FCA or the Panels.If you receive a request to participate in the survey and have any questions, contact Verian on 0800 015 0302 or at fcappsurvey@veriangroup.com.Alternatively, you can contact the FCA Supervision Hub on 0300 500 0597.

We welcome a positive outcome for investors, following our High Court proceedings over collective investment schemes. We brought a High Court claim against Lupton Fawcett LLP in respect of work undertaken for the Qualia Group of companies by a former member of the firm in and around 2016. In our claim, we alleged that Lupton Fawcett LLP had been knowingly concerned with the promotion of collective investment schemes operated by Qualia.The FCA and Lupton Fawcett LLP have now settled that claim on confidential terms.As part of that settlement process, and without any admission of liability, Lupton Fawcett has said: ‘Lupton Fawcett LLP wishes to express its profound regret that it ever became involved with the Qualia group of companies, and Lupton Fawcett LLP further supports the FCA in its message to professional advisers, namely that particular caution should be exercised in the context of providing advice in connection with collective investment schemes.’We welcome the constructive approach that Lupton Fawcett has taken since we brought proceedings and are satisfied that the settlement is the best outcome for investors. Professional firms that go beyond their remit by promoting unlawful investment schemes risk causing significant harm.Qualia investorsWe will contact affected UK-based Qualia investors in due course to arrange distribution of funds.Any UK investor in the Qualia scheme who has not received an email from us by 31 January 2025 should contact us to make sure the contact details we hold are up to date.Email: QualiaInvestors@fca.org.uk

Next steps for open banking will include a new independent company to drive forward variable recurring payments. Open banking is a UK success story with over 11.7 million active users and over 22.1 million open banking payments made monthly.There was significant progress in developing open banking in 2024, thanks to voluntary funding from 20 leading firms. This included:fraud analysis capabilitiesconsumer protectionsnew open banking services such as variable recurring payments (which will give consumers greater sight and control over their regular payments)It is clear from the National Payments Vision, and the government’s growth agenda, that continued success in this area is critical for the UK. The FCA and the Payment Systems Regulator (PSR) are fully supportive and are ready to meet this challenge – as set out in Nikhil Rathi’s letter to the Prime Minister and the PSR’s recent strategy update.Benefits of variable recurring paymentsAn important initiative underpinning growth is the development of new services that will give consumers and businesses more choice in how they make and receive payments safely, securely and efficiently.As a step towards using open banking payments for e-commerce, variable recurring payments will help consumers to take greater control of their regular payments. It will do this by allowing customers to control how much can be paid at one time or over the course of a month, reducing the risk of unexpected expenditure.For businesses, variable recurring payments offer greater competition to current payment methods and could help reduce processing fees. They could also increase the proportion of customers who complete a payment, through better user experiences.New independent operator for variable recurring paymentsOpen Banking Limited has been central to delivering progress.As part of the next steps to deliver variable recurring payments, Open Banking Limited will play a key role in establishing an independent central operator to coordinate how variable recurring payments are made.We support it in doing that, working with industry and trade associations, and look forward to significant progress being made in 2025. This will see live services available for consumers to make recurring payments to:utility companiesgovernmentfinancial services firmsIn addition, we are working with industry and trade associations to progress development of the commercial arrangements underpinning both variable recurring payments and use of open banking for e-commerce.Next stepsIt is critical that the collaboration seen in 2024 across the industry continues this year.We thank industry for their continued support and engagement in the success of open banking so far and we will continue to work together constructively as we implement the next steps.The FCA and PSR will continue to work closely together, overseen by a joint steering committee.

On 22 January 2025, London Community Credit Union (LCCU) was placed into administration and has now stopped trading. James Sleight and Stratford Hamilton of PKF Littlejohn Advisory Limited have been appointed as joint administrators. LCCU is a financial co-operative owned by its members. It is regulated by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) under Firm Reference Number (FRN) 213743 as a deposit-taker.The Financial Services Compensation Scheme (FSCS) is stepping in to protect members and will return members’ money within 7 working days from when the Credit Union was declared in default (22 January 2025).Members with a valid email address registered to their LCCU account, can request their payment from FSCS either by cheque or direct bank transfer via the online FSCS Payments Portal. Members will receive an email from FSCS inviting them to use the portal if they are eligible. The email will be sent from the following email address no-reply@payments.fscs.org.uk.Members who don’t receive an email from FSCS or are unable to use the FSCS Payments Portal before it closes, don’t need to do anything. FSCS will automatically send a cheque for their payment in the post within 7 working days. There is no need to contact FSCS.Members can get more information about receiving their money by: emailing - enquiries@fscs.org.ukcalling FSCS - 0800 678 1100 or 020 7741 4100, lines are open Monday to Friday from 9.00am to 5.00pmviewing the FAQs on the FSCS websiteviewing information on the Payments PortalMembers who make or receive regular payments from their account (eg, salary, rent or benefits) or want to discuss their accounts can: visit the LCCU websiteemail the administrator on lccu@pkf-l.com call the administrator on 020 7729 9218, 020 7189 1379, or 0113 541 7890Guidance is available on both the LCCU website and administrator website.Being alert to scamsAll customers should remain alert to the possibility of fraud. If you are cold called by someone claiming to be from the credit union, PKF or the FCA, please end the call and contact them directly using the contact details provided by us. See more on how to protect yourself from the most common types of scams.

The FCA has taken action to protect consumers by stopping Arthur Temlett, trading as Abacus Insurance Consultants, from carrying out any regulated activities, including acting as an insurance broker. The FCA is concerned that Abacus Insurance, which was based in Dumfries and Galloway, may have been selling home/motor insurance and not passing premium payments on to the insurance provider. Having a valid insurance policy is essential, and customers affected may be concerned about whether cover they have paid for is in place.Advice for ConsumersThe FCA is working with the relevant authorities to assess the situation.Customers who purchased car and home insurance from Arthur Temlett should contact their insurance providers directly to check that it is valid and in place. If they are uninsured, they should arrange alternative cover immediately.Alternative insurance can be bought directly from an insurance firm or arranged via an insurance broker. The British Insurance Brokers’ Association offers a service for customers who need help finding an authorised broker.Anyone who believes they have paid for a policy that does not exist should report this to Police Scotland in the first instance by dialling 101 and using the crime reference number: CR/0470100/24 before making a report to the FCA.We are in the early stages of assessing the number of customers who took out investments with Abacus Insurance, so we do not have further information at this stage. We would encourage customers to make a report to Police Scotland in the first instance using the crime reference number: CR/0470100/24 before making a report to the FCA.We will update this page with further details once we know more.Next StepsAt this stage, consumers do not need to submit complaints to the Financial Ombudsman Service. The FCA is continuing its enquiries and will provide updates on this page, including whether consumers should contact the Financial Services Compensation Scheme.Notes to editorsArthur Temlett trading as Abacus Insurance Consultants Firm Ref: 118204.Abacus Insurance is an insurance broker that sold motor and house insurance products from a range of insurers. Further information on the restrictions can be found on the Financial Services Register. Consumers can check the FCA consumer pages which contains a guide for using the Financial Services Register.Customers can use the askMID website for free to check if a specific vehicle is insured. However, this should not be relied on as evidence of cover as it is not able to confirm details of the insurer, the named policyholder, or the level of cover.Consumers should contact Police Scotland on telephone number 101 quoting crime reference CR/0470100/24 and must be prepared to provide personal details and information about any investments they undertook with Abacus.Customers can also make a report to the FCA using the contact details on the website.Find out more information about the FCA.

We have responded to the Government, setting out the significant work we already have underway and how we will go further to support growth. Read our letter.

The Financial Conduct Authority (FCA) has today opened further floor space at its existing base at 6 Queen Street, increasing it by an additional 5,000 square feet. First opened in 2022, the FCA’s regional office in Leeds is now a base for over 300 employees, with around 100 more people expected to be welcomed into the additional space this year.The new floor space was officially opened today by the FCA's chief executive Nikhil Rathi. He was joined by guests Beth Russell, second permanent secretary to the Treasury and head of the Darlington Economic Campus at HM Treasury, Leeds City Council’s chief executive Ed Whiting, Sebastian Walsh, the Bank of England’s head of Leeds and Felix Kumi-Ampofo, director of inclusive economy, skills and culture from West Yorkshire Combined Authority.Nikhil Rathi, chief executive of the FCA said:'I’m delighted to open the new floor here in Leeds today. The expansion provides further opportunity for us to benefit from a broader talent pool, offering different perspectives and experiences, meaning we can better represent the communities we serve.'Ed Whiting, chief executive of Leeds City Council said:'Leeds is rapidly establishing itself as a leading hub for finance and technology. Our vibrant city is a beacon of diversity and innovation, making it one of the most dynamic and exciting cities in the UK. I’m delighted to see the FCA’s commitment to enhancing our city’s growth and influence, and I look forward to a successful future together.'Tracy Brabin, Mayor of West Yorkshire said:'The Financial Conduct Authority’s expansion is fantastic for our region, cementing West Yorkshire as the regional leader for financial services.'It’s creating more well-paid jobs and supporting our ambition to drive economic growth in a stronger, brighter West Yorkshire that works for all.'We look forward to working with the FCA as our financial services sector goes from strength to strength.'Notes to editorsWe will be celebrating the floor opening with a ribbon-cutting ceremony at 12pm, 16 January 2025, 1st floor, 6 Queen Street, Leeds.Images will be shared post-event.The Leeds office was announced in the FCA’s Business Plan in July 2021.

The FCA has fined Arian Financial LLP (Arian) £288,962.53 for failing to ensure it had effective systems and controls against financial crime. Arian’s failure to implement adequate systems and controls against financial crimeput it at risk of being used to support fraudulent trading and money laundering on behalf of clients of the Solo Group.This is the seventh case brought by the FCA in relation to cum-ex trading and withholding tax schemes. This has involved proactive engagement with EU and global law enforcement authorities. The FCA has imposed fines of more than £22m in relation to this trading.Arian executed purported over-the-counter equity trades of approximately £37 billion and £15 billion in Danish and Belgian equities on behalf of the Solo Group’s clients, receiving commission of approximately £546,949.The trading was, throughout the period, circular, which is highly suggestive of financial crime. It appears to have been carried out to allow the arranging of withholding tax reclaims in Denmark and Belgium.In 2014 and 2015, the Solo Group made withholding tax reclaims of £899.27m and £188.00m to Danish and Belgian authorities, with approximately £845.90m and £42.33m respectively paid.Arian admitted liability but referred the FCA’s proposed fine to the Upper Tribunal. The Tribunal reduced the fine that the FCA would have imposed from £744,745 to £288,962.53. The Tribunal agreed with the FCA’s assessment of the seriousness of the misconduct and the need to impose a penalty. However, the Tribunal reduced the fine as, in the circumstances, it considered the financial benefit Arian received should be net of certain fees Arian paid to Solo and the broker in respect of the trades.Steve Smart, Joint Executive Director of Enforcement and Market Oversight, said:'Arian failed to identify red flags which ought to have been obvious. The controls the firms we regulate have in place are an important line of defence against our financial system being abused for criminal ends. Arian’s fell short of what we expect. We are pleased that the Tribunal recognised the seriousness of Arian’s misconduct.'Notes to editorsFinal Notice: Arian Financial LLP (PDF)Read the Tribunal decision dated 11 November 2024.Arian breached Principle 2 and Principle 3 of the FCA’s Principles for Business between 29 January 2015 and 29 September 2015.Principle 2 of the FCA’s Principles for Business states that 'A firm must conduct its business with due skill, care and diligence'.Principle 3 of the FCA’s Principles for Business states that 'a firm must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems'.This is the seventh case brought by the FCA in relation to cum-ex trading. The previous six FCA cases relating to cum/ex trading concluded in May 2021 – Final Notice: Sapien Capital Ltd, November 2021 – Final Notice: Sunrise Brokers LLP, July 2022 – Final Notice: TJM Partnership Limited (in liquidation), June 2023 – Final Notice: ED&F Man Capital Markets Ltd, July 2023 – Final Notice Bastion Capital London Ltd and September 2023 – Decision Notice: Nailesh Teraiya.The Solo Group consists of four previously authorised firms: SCP, West Point Derivatives Ltd, Old Park Lane Capital Ltd and Telesto Markets LLP.Clients of the Solo Group refers to entities that the Solo Group introduced to Arian and other broker firms. Arian executed purported equity trades on behalf of some clients of the Solo Group during the Relevant Period.Cum-ex trading involves trading of shares on or just before the last cum-dividend date. If in a suitable jurisdiction this can then allow a party to claim a tax rebate on withholding tax, sometimes without entitlement. The intention of dividend arbitrage trading (of which cum-ex is an example) is to place shares in alternative tax jurisdictions around dividend dates, with the aim of minimising withholding tax or generating withholding tax reclaims. This may involve several different trading activities including trading and lending securities and trading derivatives, including futures and total return swaps, designed to hedge movements in the price of the securities over the dividend dates.Withholding tax is a levy deducted at source from income and passed to the government by the entity paying it. Many securities pay periodic income in the form of dividends or interest, and local tax regulations often impose a withholding tax on such income. In certain cases where WHT is levied on payments to a foreign entity it may be reclaimed if there is a formal treaty, called a double taxation agreement (DTA), between the country in which the income is paid and the country of residence of the recipient. DTAs allow for a reduction or rebate of the applicable WHT.The FCA publication of Market Watch 52 highlighted various issues and concerns around dividend arbitrage in 2017. FCA contributed to the European Securities and Markets Authority (ESMA) Final Report on Cum-Ex, Cum-Cum and WHT in 2020.