
UK watchdog ends 'cum-ex' probe with final fine over Shah tax trades
Summary
FCA issues final, eighth cum-ex fine
Mako 'traded' Danish, Belgian stocks for Sanjay Shah's Solo
Shah is appealing Danish jail sentence
Mako says fine related to business closed a decade ago
LONDON, Feb 18 (Reuters) - Britain has closed its investigation into "cum-ex" dividend tax fraud, issuing its eighth and final penalty over a trading scheme that is estimated, opens new tab to have siphoned billions of euros from continental European states' coffers.
The Financial Conduct Authority said on Tuesday it had fined Mako Financial Markets 1.66 million pounds ($2.1 million) for missing red flags when executing billions of pounds in purported Danish and Belgian trades for clients of convicted hedge fund founder Sanjay Shah's Solo Group between 2013 and 2015.
The FCA, which has now slapped fines worth more than 30 million pounds on seven companies and one individual over cum-ex trading, said it found no evidence that clients of Solo owned the shares. Coupled with the high volumes of stock apparently traded, this was highly suggestive of financial crime, it said.
In cum-ex schemes, shares were traded rapidly to blur stock ownership ahead of a dividend payout, allowing multiple parties to claim tax rebates and exploit the tax codes of countries such as Denmark, Germany and Belgium. A crackdown has triggered bank raids, criminal and civil proceedings worldwide.
Mako CEO Trystan Morgan Schauer said the fine related to a business that had been closed almost a decade ago, noting the company was now a proprietary trading firm.
"Mako has nevertheless dedicated time and resources to strengthening its systems, controls and governance structure, including when on-boarding new businesses, to seek to prevent a recurrence of the matters set out in the (FCA) notice," he added.
Mako qualified for a 30% reduction in the penalty for agreeing to settle and not disputing the FCA's conclusions. Its fine would otherwise have been 1.89 million pounds.
British trader Shah, who has become the face of cum-ex trading, is appealing against a Danish 12-year jail sentence over tax fraud. He is being separately pursued in a 1.44-billion pound London civil case by Denmark's tax authority SKAT.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Powys County Times
5 minutes ago
- Powys County Times
Nigel Farage calls for ‘re-industrialisation' of Wales
Nigel Farage has said his party wants to restart Port Talbot's blast furnaces and 're-industrialise Wales'. On a visit to South Wales, the leader of Reform UK said the resumption of traditional steelmaking and coal production is the party's long-term ambition if it comes to power. The speech came one year ahead of the Senedd elections in May next year, where the party is looking to end Labour's 26 years of domination. Addressing reporters, Mr Farage acknowledged that plans to open a traditional furnace could take years and cost 'in the low billions'. The GMB Union has branded the plans 'more lies from an opportunistic chancer'. Port Talbot's remaining blast furnaces were shut down in September, with a new electric arc furnace being built in their place. Tata Steel, the owner of the plant, said the closure of the furnaces was necessary, with the steelworks losing £1m a day. 'Our ambition is to re-industrialise Wales,' Mr Farage said. 'We are going to be using more steel over the next few years than we have probably ever used. 'As we increase military spending and as we attempt a house building programme in Wales, and even more so in England, of massive proportions, just to catch up with the population explosion over the last 20 years, we are going to need a lot of steel.' The Reform leader said 'specific types of coal' are needed in the UK, particularly for a new blast furnace. 'I'm not saying let's open all of the pits,' he said. 'What I am saying is coal, specific types of coal for certain uses that we still need in this country – and we certainly will need for the blast furnaces here – we should be producing ourselves rather than importing.' While he acknowledged 'mining is dangerous', Mr Farage said the industry could provide well-paying jobs. The Reform leader acknowledged the plan to open a new furnace would cost 'in the low billions' and would be 'no easy thing'. 'It's a massive, expensive job to reopen blast furnaces, we're going to need cheaper energy, we're going to need much cheaper coal, we are going to need private business partners prepared to come into a joint venture,' he said. Responding to the GMB Union allegations that his party's plans were 'lies', Mr Farage said the union was tied to the Labour Party as one of its biggest funders. He said: 'They see us as a challenge, and therefore, they'll be rude about us. 'What you will find is that increasingly, GMB members are going to vote for us, and the more GMB members vote for us, the more upset GMB officials and leaders will become. 'Frankly, the trade unions have done nothing to protect British workers through open borders over the last 20-25 years.' During his speech, Mr Farage said he doubted that the electric arc furnace, which is due to come online in 2028, 'will ever, ever be switched on'. Challenged on what evidence he had, he argued that with British energy prices being so high, it would be producing 'very, very expensive secondary steel'. He added: 'I hope I'm wrong, an electric arc furnace is not the real deal, but it's better than nothing.' Mr Farage said the party's campaign for the Senedd election next May 'starts today', but would not say when Reform would announce a leader in Wales. Regional officer Ruth Brady, speaking at the GMB's annual conference in Brighton, said: 'The people of Port Talbot will see this for what it is – more lies from this opportunistic chancer. 'Nigel Farage was happy to let British Steel go to the wall. He'll trot out any line when the cameras are rolling. He doesn't care about steel communities or steel workers.' Ms Brady said the plans to shut the blast furnaces were made by the last Tory government and the union wanted Labour to 'make good on their promises to our members in Port Talbot'. Political opponents hit out at Reform's plans, with a Welsh Labour spokesperson saying the people of Wales would 'see through' Mr Farage's false hopes and promises. 'His answer is to bring back the mines. The only thing Nigel Farage is trying to mine is votes from communities that have already gone through tough times,' they said. 'Nigel Farage has today brought his fantasy politics and magic money tree to Port Talbot. He's gambling with real people's livelihoods.' Darren Millar, leader of the Welsh Conservatives in the Senedd, accused Mr Farage of making 'wild promises' without speaking to Tata. Welsh Liberal Democrat MP David Chadwick argued mining was Wales' past, not its future. 'My relatives in South Wales worked hard to ensure that their children and grandchildren wouldn't have to do the dangerous work of going down the pits and for future generations to have better opportunities in life,' he said. 'The fact that Nigel Farage doesn't see this shows how poorly he understands Welsh communities.' Heledd Fychan, speaking for Plaid Cymru, accused Mr Farage of 'taking advantage' after the industry said reopening the existing furnaces would be 'impossible.' 'You can imagine my surprise at his calls to reopen the coal mines in Wales, especially considering the actions taken by his political hero, Margaret Thatcher,' she said. 'Reform clearly have no interest in actually improving the lives of the people of Wales, they can only come up with unrealistic and unsubstantiated headlines that will be of no material benefit to the people of Port Talbot or Wales. Greenpeace also hit out at the plans, saying bringing back British coal 'has about as much chance of success as resurrecting dinosaurs'.


Reuters
8 minutes ago
- Reuters
BlackRock calls antitrust claims "unprecedented, unsound and unsupported"
June 9 (Reuters) - An attorney for BlackRock called antitrust claims by Republican-led states "unprecedented, unsound and unsupported" on Monday and said they had failed to show how the firms' involvement with industry climate groups interfered with market competition. Gibson Dunn attorney Gregg Costa spoke as BlackRock (BLK.N), opens new tab and co-defendants Vanguard and State Street (STT.N), opens new tab seek to dismiss the claims in the closely watched antitrust case brought by Texas and 12 other states.


The Guardian
11 minutes ago
- The Guardian
Tottenham approach Brentford over appointing Thomas Frank as head coach
Tottenham have approached Brentford over appointing Thomas Frank as their new head coach. The Dane is the club's No 1 target to replace Ange Postecoglou, who was sacked on Friday, and there is confidence that a deal will be struck in the next 48 hours. Negotiations are due to take place on the cost of recruiting Frank, who has a £10m release clause, and his backroom staff. The 51-year-old wants to join Spurs after almost seven years at Brentford, with c already in place. Spurs have moved swiftly after parting company with Postecoglou, who lost his job despite winning the Europa League and ending the club's 17-year wait for a major trophy last month. The Australian's fate was decided after the chairman, Daniel Levy, looked past the side's European run and focused on a dreadful Premier League campaign. Spurs finished 17th last season after losing 22 games. That has not made the job less attractive to Frank, who will be taking over a team that earned Champions League qualification thanks to their triumph over Manchester United in Bilbao. Frank has established himself as one of the most respected managers in the top flight since leading Brentford to promotion from the Championship in 2021. They have steered clear of relegation battles and finished 10th last season. Frank has operated with a modest budget and has admitted that Brentford cannot hope to hold on to their best players if bigger clubs try to buy them. Bryan Mbeumo is expected to depart for Old Trafford this summer. It remains to be seen how Brentford respond if everything goes smoothly with Spurs and Frank departs. Kieran McKenna has been suggested as a potential replacement for Frank but it is not clear if he wants to leave Ipswich Town.