Fine Amount: £99,200 (reduced from £141,800 due to a 30% settlement discount)
Primary Violation: Transaction Reporting Violations (Article 26(1) of MiFIR)
Fine Date: 27 January 2025
On 27 January 2025, the Financial Conduct Authority (FCA) imposed a fine of £99,200 on Infinox Capital Limited (Infinox). The enforcement stems from the firm’s failure to submit transaction reports in relation to a significant portion of its single-stock Contracts for Difference (CFD) trades. These transaction reporting requirements are crucial for the FCA’s market oversight and abuse detection efforts under the UK Markets in Financial Instruments Regulation (MiFIR).
Specifically, the FCA identified that between 1 October 2022 and 31 March 2023, Infinox did not submit required transaction reports for a large number of single-stock CFD trades executed through one of its corporate brokerage accounts. Although Infinox became aware of this omission following a third-party review, it did not proactively disclose the breach to the FCA.
Transaction Reporting Requirement
Scope of the Breach
Discovery and Delayed Notification
Calculation of the Penalty
The FCA attributed a baseline value of £2.00 for each unreported transaction, arriving at an initial figure of £92,106.
A seriousness factor of 20% was then applied, increasing the amount to £18,421.20. Additional aggravating factors (including prior transaction reporting issues and delayed breach notification) brought the total to £20,263.32.
To ensure deterrence, a multiplier of 7 was applied, raising the fine to £141,843.24.
Infinox received a 30% discount for agreeing to settle, resulting in a final penalty of £99,200.
First Enforcement Under UK MiFIR
The FCA highlights that while it has fined other firms for transaction reporting failures, this is the first enforcement action taken against a firm specifically for breaching UK MiFIR transaction reporting obligations.