Information on investigations relating to Cum-Ex trades and cryptocurrency fraud

FOI Release Date of Release:

Reference Case Number: FOI9170

Freedom of Information: Right to know request:

  1. As of 5th April 2022, how many individuals are currently under investigation by the FCA in relation to Cum-Ex trades?
  2. As of 5th April 2022, how many organisations are currently under investigation by the FCA in relation to Cum-Ex trades?
  3. In the financial year ending 5th April 2022, how many investigations of individuals in relation to Cum-Ex trades have been ended by the FCA with no action being taken?
  4. In the financial year ending 5th April 2022, how many investigations of organisations in relation to Cum-Ex trades have been ended by the FCA with no action being taken?
  5. As of 5th April 2022, how many potential future targets for investigation in relation to Cum-Ex trades has the FCA identified? How many of these are individuals?

 

FCA response:

Question 1

As at 5 April 2022, 5 individuals were under investigation.

Question 2

As at 5 April 2022, 11 organisations were under investigation.

Question 3

As at 5 April 2022, 3 investigations of individuals in relation to Cum-Ex trades had ended in no action being taken.

Question 4

As at 5 April 2022, no investigations of organisations in relation to Cum-Ex trades have ended with action being taken.

Question 5

We do not hold the information you have requested. This is because we only record information about individuals and firms currently under investigation.

Questions 6 - 9

It should be noted that investment in cryptoassets is not a regulated activity. Cryptoassets and cryptoasset-related activities sit largely outside the regulatory perimeter. However, for the purposes of combatting money laundering and terrorist financing, in 2020 certain cryptoasset firms became subject to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). These firms must be registered with the FCA. This regime is limited in scope, covering money laundering only.

Crypto advertising is also currently not FCA regulated, although HM Treasury has announced it will seek to extend the financial promotions rules to unregulated cryptoassests in the near future and the FCA is consulting on rules proposing to treat unregulated cryptoassets as a high-risk investment for these purposes.

In the context of the largely unregulated nature of cryptoassets, where you refer to ‘investigations’ we take this to mean ones in which FCA investigators have been formally appointed under section 168 of the Financial Services and Markets Act 2000 (FSMA). On this basis, we have not opened investigations into any firms for engaging in such activities without FCA authorisation. As explained above, this is because in order for the FCA to be able to take regulatory action, a firm would need to be engaging in activity within our remit and in breach of the MLRs or FSMA.