The Financial Services Authority (FSA) has today fined Bear Stearns International Limited ("BSIL") £40,000 for failing to report contracts for differences (CFD) transactions.
During a review of trading, the FSA discovered that BSIL had inadvertently failed to report any of its CFD transactions to the FSA since August 2001, which is when the firm began to undertake CFD business.
Accurate transaction reports are critical to the FSA's ability to maintain confidence in the financial markets and reduce financial crime.
Background
- The full text of the Final Notice, dated 22 July 2005 includes the background to the case, the relevant statutory provisions and the regulatory requirements contravened and the factors taken into account by the RDC when setting the level of the fine.
- The FSA's Handbook module SUP 17.4 requires authorised firms to make transaction reports in respect of all reportable transactions which it makes, either on its own or on behalf of another. Reportable transactions include transactions involving contracts for differences on equities.
- The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the appropriate degree of protection for consumers; and fighting financial crime.
- The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.
