The UK Financial Conduct Authority has fined Dinosaur Merchant Bank Limited (DMBL) £338,000 for failing to implement effective systems for detecting and reporting suspicious trades in its CFD business.
Singapore Summit: Meet the top APAC brokers you know (and those you don’t know yet!).
The fine comes amid wider regulatory developments in the UK CFD sector. Financial Intelligence Analysis highlights Magnits Overlapping requirements for UK CFD brokersincluding rules for reporting operational incidents and third-party disturbances through a single portal. The report also indicates that other cases have emerged compliance Commitments that together increase the regulatory burden on the sector.
The Financial Conduct Authority (FCA) flags missing CFD trades made by DMBL
In June 2024, DMBL launched a new ordering system. This led to a significant rise in CFD trading on its platform. Between June and October 2024, clients executed trades worth approximately $3.05 billion. The FCA found that these trades were not captured or reviewed by DMBL’s automated monitoring system, meaning potential market abuse could have gone undetected.
The DMBL identified the issue in October 2024 but did not fully address the deficiencies until May 2025. The regulator said the delay limits the company’s ability to detect and report potentially suspicious deals.
FRA reduces DMBL fine by thirty percent
Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: “The DMBL’s failures could have undermined market integrity. Firms must ensure they have effective oversight arrangements in place. We will continue to take action where this is not the case.”
DMBL cooperated fully with the FCA investigation and qualified for a 30% discount on the fine. Without this reduction, the fine would have been £482,900.
A DMBL spokesperson said: “We have worked constructively with the FCA to resolve this landmark matter. During 2025 (May), DMBL ceased CFD operations and implemented improvements across the company which addressed the FCA’s concerns.”
The FCA is planning faster monitoring tools for CFDs
FCA plans to expand Its use of artificial intelligence and data tools in 2026/27 to support oversight
For high-risk retail sectors, including CFDs. The regulatory body is developing new licensing systems, simplifying the reporting process and expanding its scope sand To test artificial intelligence.
Additional measures include fee adjustments, updates to the My FCA platform, and enhanced financial crime and consumer harm monitoring. The program aims to improve efficiency, risk detection and regulatory consistency.
This article was written by Tariq Sikdar at www.financemagnates.com.
Source link
