The Financial Conduct Authority has fined Dinosaur Merchant Bank Limited (DMBL) GBP 338,000 for failing to maintain effective systems and controls to detect and report suspicious trading in its contracts for difference (CFD) business. After DMBL introduced a new order system in June 2024, client CFD trading increased sharply. Between June and October 2024, trades with a corresponding asset value of about USD 3.05 billion were executed via the platform but were not captured and reviewed by the firm’s automated surveillance system, creating a risk that potential market abuse could go undetected. DMBL identified the issue in October 2024 but did not properly address the deficiencies until May 2025, limiting its ability to identify and report potentially suspicious trading, and it stopped selling CFDs in May 2025. The FCA said DMBL breached Article 16(2) of the UK Market Abuse Regulation, SYSC 6.1.1R, and Principle 3; the final penalty reflects a 30% cooperation discount, with the undiscounted fine being GBP 482,900.
Financial Conduct Authority 2026-03-27
Financial Conduct Authority fines Dinosaur Merchant Bank Limited GBP 338,000 for CFD market abuse surveillance failures
The Financial Conduct Authority fined Dinosaur Merchant Bank Limited GBP 338,000 for inadequate systems to detect and report suspicious trading in its contracts for difference business. The firm failed to capture and review trades worth USD 3.05 billion between June and October 2024, breaching UK Market Abuse Regulation and other rules. The penalty includes a 30% cooperation discount, reducing the fine from GBP 482,900.