FCA hits British market maker WH Ireland with £1.2 million fine for failing to address market abuse issues

British financial markets regulator, the Financial Conduct Authority (FCA) has issued a £1.2 million fiscal penalty to wealth management firm WH Ireland, imposing sanctions on the firm’s corporate broking division which prevents it from onboarding new clients for 72 days. The FCA, which took this action relating to a period of time within WH Ireland’s operations between […]

London, Canary Wharf from Thames

British financial markets regulator, the Financial Conduct Authority (FCA) has issued a £1.2 million fiscal penalty to wealth management firm WH Ireland, imposing sanctions on the firm’s corporate broking division which prevents it from onboarding new clients for 72 days.

The FCA, which took this action relating to a period of time within WH Ireland’s operations between January and June 2013, has stated that the company did not have the correct controls in place to prevent market abuse from taking place, or to ensure that it was detected internally.

A substantial £1.2 milion fine has been issued, and the company, which provides investment management for retail customers, as well as brokerage services which includes research, market making and fund raising capabilities to quoted small/mid-cap companies, which is the division of the company that is subject to a prevention of taking new clients for two and a half months.

Despite the shortcomings being highlighted by the FCA two years ago as a result of their discovery in 2013, FCA concluded that the company did not implement the required changes within the timeframe set by the regulator.

Making a public statement on the matter, FCA Director of Enforcement Mark Steward explained:

“We expect all firms to have the right controls in place to mitigate risks and protect their clients and the integrity of the markets.,In this case, WHI’s failings were aggravated by the failure to implement adequately the skilled person’s recommendations. It is one thing to be given a chance; for the chance not to be taken up is especially culpable.”

WH Ireland chief executive Richard Killingbeck also made a statement:

“As the FCA has noted we have made, and continue to make, wholesale changes to our management team and our systems and controls. We regret that we fell short of the FCA’s expectations but since the beginning of my tenure in early 2013, significant changes have been made at the company and new specific oversight functions have been created.”

As is commonplace when dealing with fines from the FCA, WH Ireland received a 20 per cent settlement discount on the original fine of £1.5m, and the restriction on new clients was reduced from 90 days to 72.

 

Read this next

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”

<