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FSA fines City Index £490,000 for reporting failures

The FSA has fined spread betting firm City Index £490,000 for transaction reporting failures.

The regulator says the spread betting firm failed to submit accurate reports in respect of 2 million transactions.

It says the failings occurred between November 2007 and September 2009 and the failings represented nearly 60 per cent of its reportable transactions.

It failed to report approximately 55,000 transactions and reported approximately 1,970,000 transactions with one or more data fields completed improperly.

The FSA says these breaches occurred despite the regulator sending repeated reminders to firms of their obligations to provide accurate data.

Managing director of enforcement and financial crime Margaret Cole says: “City Index failed to report accurately a high proportion of its transactions for almost two years. This failure is a serious breach of our rules because it can have a damaging impact on our ability to detect and investigate suspected market abuse.

“Firms and their management must ensure they submit quality transaction reporting data and we encourage all firms to review the integrity of this data on a regular basis. We will continue to monitor the quality of firm reporting and we are committed to taking action where necessary to ensure firms comply with their reporting obligations.”

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. Oh dear…for a business that is effectively only about transactions a failure rate of 60% seems more than careless. I imagine that if most IFAs messed up 60% of their data they would probably not be permitted to continue trading.

  2. and where is the public censure for the Senior Managers responsible, where are the peronal fines and suspensions for the CF1s and CF8s involved?

  3. everyday there is news of another fine, all fairly substantial…. WHERE does this money go??

  4. Anon 1.06pm. Hector pension pot perhaps.

  5. The fine is so small for the amount of money these spreadbetting companies earn… they should have been fined 10 times that amount. What about the other spreadbetting companies – i am sure they have had issues with transaction reporting – MF Global certainly have i hear.

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