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FSA fines two firms over £250k for transaction reporting failures

FSA 480

The FSA has fined two firms a total of over £250,00 for failing to provide accurate and timely transaction reports to the regulator.

Online contracts for difference trading facility provider Plus500UK has been fined £205,128, while stockbroking firm James Sharp and Company has been fined £49,000.

Plus500UK is the first firm to be fined for transaction reporting failures under a new FSA penalties policy, which pushed the company’s fine higher than it would have been under the previous penalties system.

Firms have to submit details of reportable transactions by close of business on the day after the transaction takes place. The FSA uses this data to detect market abuse.

Between 29 June, 2010 and 5 November, 2011 Plus500UK failed to report any of its 1.3m reportable transactions correctly, and failed to report 189,000 of them at all. Between 5 November, 2007 and 8 February, 2011 James Sharp and Company failed to report any of its 71,000 reportable transactions.

The FSA says systems and controls at both firms were inadequate as neither had documented procedures in place for transaction reporting and failed to provide and relevant training to staff. Plus500UK also failed to set up appropriate reporting systems.

FSA director of markets David Lawton says: “Accurate transaction reports are a key tool in our efforts to tackle market abuse.  We will take action where necessary to ensure firms, regardless of size, comply with their reporting obligations.  As well as a financial penalty, firms can also expect to incur the cost of resubmitting historically inaccurate reports.”

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