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Scottish Limited Partnerships (SLPs), fronting for binary options firms, escape from fines over non-compliance with rules

The UK Secretary of State for Business, Energy and Industrial Strategy, Margot James has disclosed that none of the Scottish Limited Partnerships (SLP) has been fined over non-compliance with the People with Significant Control (PSC) rules since it came into effect.
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The new rule, which was designed to foster more transparency in the operations of Scottish Limited Partnerships by forcing them to reveal the identity of their owners appear not to carry much weight, as many of the entities flouting the rules seem not bothered by the £500 fine for noncompliance.
During a question and answer session at the House of Commons, Dame Margaret Hodge asked Conservative MP Margot James about the number of SLPs that have been fined since the implementation of the People with Significant Control rule. In an official statement which was made available to journalists, the Conservative MP Margot James stated that no Scottish Limited Partnerships had been fined since the People with Significant Control (PSC) rule was enforced. Margot added that the rule was not meant to prosecute erring entities, but to increase compliance and that they will increase their effort to ensure that all SLPs disclose their PSC information.
The statement of the Secretary of State indicates that non-compliant SLPs will not be fined under the new rule. The PSC rules set out a £500 fine per day if SLPs don’t comply with the new regulation.
Speaking further on the matter, Conservative MP Margot James disclosed that should there arise cases of non-compliance by SLPs, Companies House will decide on the next course of action. Cases may be referred to enforcement agencies who will conduct a criminal investigation that could lead to the prosecution of erring SLPs, where applicable.
SLPs have a special status which allowed them to conceal the identity of their owners and file no accounts, until the PSC regulations came into force. This special status allowed SLPs to act as fronts for binary options firms. According to a report by the Scottish Herald which put the number of Scottish shell companies fronting for binary options brokers at 43, 41 of those companies are Scottish Limited Partnerships.
Authorities in the UK are stepping up action to combat binary options fraud as witnessed on the 17th of October, 2017, when the City of London Police staged a day of action against binary options fraudsters. In the meantime, a growing number of people are falling prey to binary options scams. Since 2012, Action Fraud has received reports of binary options fraud from a total of 2,065 people, with over £59 million lost to the fraudsters.
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