FCA fines Arian Financial LLP £288,962.53 for inadequate financial crime controls in cum-ex trading case

Article summary

The Financial Conduct Authority (FCA) has fined Arian Financial LLP (Arian) £288,962.53 for failing to implement effective systems and controls against financial crime, which exposed it to risks of fraudulent trading and money laundering on behalf of the Solo Group's clients. Arian breached Principles 2 and 3 of the FCA’s Principles for Business, which require firms to conduct business with due skill, care, and diligence, and to have adequate risk management systems. Arian admitted liability and the Upper Tribunal reduced the FCA's proposed fine from £744,745 to £288,962.53, considering the net financial benefit Arian received after fees, agreeing with the FCA on the severity of the misconduct.