> ## Content Index
> Fetch the complete content index at: https://www.theglobalbanker.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# FCA fines Arian Financial £288,962 over cum-ex trading failings after tribunal cuts penalty
- URL: https://www.theglobalbanker.com/fca-fines-arian-financial-288-962-over-cum-ex-trading-failings-after-tribunal-cuts-penalty/
- Published: 2025-01-10T11:04:00.000Z
- Updated: 2026-11-08T12:02:21.000Z
- Description: Arian admitted liability but challenged the size of the fine; the Upper Tribunal reduced the FCA's proposed £744,745 penalty after netting fees Arian paid on the Solo Group trades.
- Author: TGB Editorial Team
- Tags: Regulations, Europe, #archive

The Financial Conduct Authority (FCA) fined Arian Financial LLP £288,962.53 on 10 January 2025 for failing to have effective systems and controls against financial crime in trading carried out for clients of the Solo Group, a series of transactions linked to cum-ex withholding tax schemes.

Arian admitted liability but referred the FCA's proposed penalty to the Upper Tribunal. In a decision dated 11 November 2024, the Tribunal reduced the fine from £744,745 to £288,962.53\. It agreed with the FCA's assessment of the seriousness of the misconduct and the need for a penalty, but considered that the financial benefit Arian received should be calculated net of certain fees it paid to Solo and to the broker in respect of the trades.

#### SOLO GROUP TRADING

According to the FCA, Arian executed purported over-the-counter equity trades of approximately £37bn in Danish equities and £15bn in Belgian equities on behalf of Solo Group clients, earning commission of approximately £546,949\. The regulator said the trading was circular throughout the period, which is highly suggestive of financial crime, and appears to have been carried out to allow the arranging of withholding tax reclaims in Denmark and Belgium.

In 2014 and 2015, the Solo Group made withholding tax reclaims of £899.27m to Danish authorities and £188.00m to Belgian authorities, of which approximately £845.90m and £42.33m respectively were paid. The FCA found that Arian breached Principles 2 and 3 of its Principles for Businesses, covering due skill, care and diligence and adequate risk management systems, between 29 January 2015 and 29 September 2015.

#### SEVENTH CUM-EX CASE

Steve Smart, the FCA's Joint Executive Director of Enforcement and Market Oversight, said: “Arian failed to identify red flags which ought to have been obvious. The controls the firms we regulate have in place are an important line of defence against our financial system being abused for criminal ends. Arian’s fell short of what we expect.”

The case is the seventh brought by the FCA in relation to cum-ex trading, following actions against firms including Sapien Capital, Sunrise Brokers, TJM Partnership, ED&F Man Capital Markets and Bastion Capital London. The regulator has imposed fines of more than £22m in relation to the trading.