Infinox Capital Fined £99,200 by FCA for Failing to Submit Transaction Reports

Infinox Capital has been fined £99,200 by the UK’s Financial Conduct Authority (FCA) after failing to submit tens of thousands of transaction reports, raising concerns about potential market abuse going undetected.

According to the FCA, Infinox failed to submit a total of 46,053 transaction reports. The regulatory body emphasized the seriousness of the breach, stating, “which risked market abuse going undetected.”

The failure occurred between 1 October 2022 and 31 March 2023, during which Infinox did not submit transaction reports for single-stock contracts for difference (CFD) trades executed through one of its corporate brokerage accounts.

Although the firm identified the reporting lapse during a third-party review, it did not inform the FCA of the breach. Instead, the regulator independently uncovered the issue and subsequently imposed the fine.

Infinox was able to resolve the case at an early stage, which qualified the firm for a 30% reduction in the penalty. Without this discount, the fine would have been significantly higher at £141,800.

CFDs, or contracts for difference, allow investors to speculate on asset price movements without actually owning the underlying assets. The FCA has taken enforcement action against multiple firms over failures in transaction reporting. However, the regulator highlighted that this particular case marks the first enforcement action for breaching transaction reporting requirements since they became law under the UK Markets in Financial Instruments Regulation (MiFIR).

Steve Smart, Joint Executive Director of Enforcement and Market Oversight at the FCA, underscored the importance of compliance, stating, “It is vital that firms submit accurate and timely transaction reports.”

By fLEXI tEAM