Parliamentary questions about SLPs, often concealing binary options fraudsters, pile up

Maria Nikolova

The questions about the enforcement of penalties against Scottish Limited Partnerships that fail to comply with the new transparency requirements come to the fore.

Shortly after Margot James, Conservative MP, had to respond to queries about the number of Scottish Limited Partnerships (SLPs) that responded to the new transparency requirements, more questions have been raised around the government response to the activities of such entities, often fronting for binary options firms.

The new regulations – Scottish Partnerships (Register of People with Significant Control) Regulations 2017, aim to bring SLPs into line with others in the UK, as they now have to disclose the identity of their beneficial owners within 28 days. In case the partnerships fail to comply, they will face daily fines of up to £500.

As per earlier statements by Margot James, however, approximately 28,100 Scottish Limited Partnerships failed to supply statements of Persons of Significant Control by the deadline given in the regulations. She added that there are approximately 33,000 SLPs registered with the UK Companies House. All registered SLPs are eligible under the terms of the Scottish Partnerships (Register of People with Significant Control) Regulations 2017.

On Tuesday, Dame Margaret Hodge, Parliamentary, House of Commons, asked the Secretary of State for Business, Energy and Industrial Strategy, how many Scottish Limited Partnerships have been fined since the People with Significant Control register came into force. Another question is if the Secretary of State for Business, Energy and Industrial Strategy will list those UK-based Trust and Company Service Providers which have incorporated more than 20 Scottish Limited Partnerships.

Dame Margaret Hodge’s questions now await an answer.

Apparently, the effect of the new regulations is not obvious and there are concerns that the rules will allow the status of SLPs to be abused by fraudulent entities.

FinanceFeeds has reported that SLPs are often used by binary options fraudsters thanks to the special status of such partnerships. Before the coming into force of the new regulations, SLPs had been allowed not to disclose the identity of their owners and to file no accounts.

A recent report by the Scottish Herald has estimated that 43 Scottish shell companies act as corporate fronts for binary options sites. Of these, 41 are Scottish limited partnerships.

Read this next

Digital Assets

Alameda sues Voyager Digital to recover $445 million

FTX’s failed trading arm, Alameda Research, asked a court to claw back $445 million from Voyager Digital, which it said SBF’s empire paid to the crypto lender before collapsing into bankruptcy.

Metaverse Gaming NFT

Toyota taps Astar Network to explore Web3 in grand style

Although the crypto ecosystem has faced its fair share of bumps, Japanese automaker Toyota is seemingly bullish about the space and continue to look at Web3 as a promising opportunity.

Digital Assets

Bitcoin dominates inflows into crypto funds, AuM hits $28B

As the price of bitcoin continues to consolidate around recent highs, investors expand their positions in funds designed to profit from further appreciation in the cryptocurrency.

Institutional FX

Fiserv secures major payment institution licence in Singapore

Brookfield-based financial services technology provider Fiserv Inc has obtained nod for a Major Payment Institution license in Singapore.

Institutional FX

Finalto expands NDFs line-up with Taiwanese dollar

Finalto announced today that it has expanded its non-deliverable forwards (NDFs) offering with the addition of Taiwan’s dollar to its trading platform.


It’s time for FX to Harness Crypto’s Potential

Jonathan Cumberlidge, FX Sales Director for BVNK, makes the case for cryptocurrencies in improving the efficiency and flexibility of foreign exchange trading.

Digital Assets

Owner of OptionMint, OptionKing, and OptionQueen gets 30 months in prison

A US federal judge has sentenced Ohio resident Jared Davis, who was found guilty for his participation in a multi-million fraud scheme carried out by Israeli-run binary options websites.

Executive Moves

iS Prime co-founders Raj Sitlani and Jonathan Brewer leave, but “business as usual”

“For our clients and teams at iS Prime, iS Risk and iS Prime Hong Kong, it is business as usual. We will be increasing our investment in our technology and staff, putting our clients first as we drive the business forwards to maintain our market leadership position.”

Digital Assets

Germany-focused DekaBank taps METACO for digital asset custody offering

“Digital assets are a critical part of the future, a radical new way for how assets will be represented, from currencies to real estate.”