Infinox Fined £99,200 for Transaction Reporting Failures

Infinox Capital Limited (Infinox) has been fined £99,200 by the Financial Conduct Authority (FCA) for failing to submit 46,053 transaction reports, potentially allowing market abuse to go undetected. These unreported transactions occurred between October 1, 2022, and March 31, 2023, involving single-stock contracts for difference (CFDs) traded through a corporate brokerage account, which represented a significant portion of this business line. Although Infinox discovered the issue following a third-party review in March 2023, they did not proactively notify the FCA of the breach, which was later independently detected by the FCA when the firm submitted transaction data and the discrepancy was identified. Infinox eventually submitted a formal breach notification to the FCA in July 2023.

It took Infinox a year to provide a complete and accurate figure to the FCA as to the total number of transaction reports it had failed to submit in respect of trades executed through the corporate brokerage account.

This breach, marks the first enforcement action against a firm for a breach of transaction reporting requirements since they became law under Markets in Financial Instruments Regulation (MiFIR), highlighting the severity of  the weaknesses in Infinox’s systems and controls. The FCA emphasised the importance of accurate and timely reporting to prevent market abuse, as well the expectation to notify the FCA in a timely manner in the event of any breaches to transaction reporting requirements, and not only once prompted by the FCA. Infinox received a 30% early resolution discount on the penalty; otherwise, the fine would have been £141,800. Read the Final Notice for more details.

If your firm is facing similar challenges with transaction reporting or other regulatory compliance issues, Objectivus can help. We specialise in reviewing and implementing robust controls to prevent such problems from arising in the future. Our expert team ensures that your compliance frameworks are thorough, up-to-date, and effective at safeguarding against potential breaches, keeping your operations smooth and compliant with regulatory standards. Reach out to us on info@objectivus.com.