UK Fines ED&F Man’s London Broker £17 Million For Illicit Tax Trades
- ED&F Man Capital Markets fined over controversial tax trades
- Broker’s fine cut by 30% in exchange for settling case
The UK’s financial regulator fined ED&F Man Capital Markets Ltd. £17.2 million ($21.3 million) over its role in Cum-Ex tax transactions, the fourth London broker to be hit with a penalty over the controversial trades.
The Financial Conduct Authority said in a statement that the brokerage — a unit of global commodities firm ED&F Man Holdings — “enabled” significant volumes of dividend arbitrage trading that allowed millions of euros to be illegitimately claimed from Danish tax authorities. It’s the largest penalty to be levied by the UK watchdog so far.