Scottish Limited Partnerships, often fronting for binary options firms, escape from fines over non-compliance with new rules

Maria Nikolova

Conservative MP Margot James has just confirmed that no Scottish Limited Partnerships have been fined since the People with Significant Control rules came into force.

It seems that the new rules that obliged Scottish Limited Partnerships (SLPs) to disclose the identity of their beneficial owners and thus boost transparency are not much of a financial threat for those entities that refuse to comply with them.

As FinanceFeeds reported last week, 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. The official answer, which was published today, is pretty straightforward.

“No Scottish Limited Partnerships (SLPs) have been fined since the People with Significant Control (PSC) register came into force”, says Conservative MP Margot James.

Margot James further explains that “Compliance is Companies House’s primary aim, rather than prosecution. It is taking action to ensure that all SLPs report their PSC information”.

Apparently, SLPs are, for the time being, safe from the fines envisaged by the new rules. In case the partnerships fail to comply with the requirement to identify their owners, they are supposed to pay daily fines of up to £500.

Margot James added that “Where SLPs do not comply, Companies House will consider what further action to take. Cases may be passed to enforcement agencies who will, where appropriate, conduct a criminal investigation, possibly resulting in prosecution”.

This, however, is a pretty abstract statement given that no fines have been imposed thus far.

SLPs often front for binary options firms 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.

The UK authorities are taking steps to clamp down on binary options fraud. On October 17, 2017, the City of London Police conducted a day of action targeting binary options scammers. Meanwhile, the number of people falling victim to binary options fraud is rising. A total of 2,065 people have reported being a victim of binary options fraud to Action Fraud since 2012, with the amount lost exceeding £59 million.

  • Read this next

    Digital Assets

    Celsius founder Mashinsky agrees to shared lawyers with Sam Bankman-Fried

    Former Celsius CEO Alex Mashinsky has addressed potential conflicts of interest in his legal representation during a brief hearing in a New York courtroom.

    Digital Assets

    Sam Bankman-Fried captured in first jail photo

    Sam Bankman-Fried, the once-billionaire founder of FTX, has been spotted looking quite different with a new beard and a slimmer figure in a photo that’s been making rounds, reportedly taken inside New York’s Metropolitan Detention Centre.

    Market News

    Bitcoin stalls at $53,000 level, Ethereum reaches $3,000

    Bitcoin (BTC) faced renewed resistance at the crucial $53,000 level on Tuesday, indicating that the primary cryptocurrency is likely to continue consolidating before making its next decisive move.

    Digital Assets

    UK targets new laws for stablecoins and crypto staking within six months

    The United Kingdom is gearing up to enact fresh legislation regulating stablecoins and crypto staking within the next six months.

    Web3

    Masa’s Milestones Before Mainnet Launch

    Since its launch in August 2022, Masa, the premier decentralized network for personal data, has experienced rapid growth, securing over 1.2 million unique wallets and accumulating more than 23 million data points. Despite a bear market, the network has attracted over 40,000 node operators to its testnet within just 18 months.

    Digital Assets

    Web3 Greatest Startup Competition Hits $10M in Prizes

    We’re thrilled to announce the return of the highly anticipated Startup Competition at Paris Blockchain Week. With a staggering array of prizes totaling over $10 million, encompassing funding, grants, credits, accelerations, listing, and more, this competition has become a cornerstone event within the blockchain startup ecosystem.  

    Digital Assets

    Hedge fund Tyr Capital faces dispute over exposure to FTX

    Crypto hedge fund Tyr Capital found itself embroiled in a dispute with one of its clients concerning its investment exposure to the bankrupt digital assets exchange FTX, as reported by the Financial Times on Tuesday.

    Retail FX

    Plus500 revenue down to $725 million, unveils $100M share buyback

    Israeli-based, but London-stock market listed Plus500 Ltd (LON:PLUS) today reported its 2023 results, which came “significantly ahead” of analysts’ estimates.

    Education

    Strategies for Profiting from Interest Rate Fluctuations

    The world of Forex trading is a complex and dynamic domain where interest rates play a pivotal role in shaping currency values. Octa’s team of financial experts delves into this intricate relationship, providing traders with a comprehensive understanding and strategies to harness economic indicators for enhanced trading performance.

    <