Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2023
Australian leverage and change-management weaknesses
ASIC required compensation after identifying weaknesses in change-management procedures and errors involving leverage-ratio limits. City Index was one of seven CFD issuers involved in aggregate compensation exceeding AUD 17.4 million.
2013
Australian client-money controls
ASIC imposed an enforceable undertaking after identifying serious weaknesses in City Index Australia's client-money handling practices. The undertaking required the appointment of an independent auditor.
2012
Australian misleading-statements findings
ASIC fined City Index Australia twice over misleading statements on its website concerning client funds.
2011
Transaction-reporting deficiencies
The UK Financial Services Authority fined City Index £490,000 after finding that approximately two million transactions had been reported incorrectly and about 55,000 had not been reported. The regulator attributed the failures to inadequate systems and internal controls.
2011
Trading-platform loophole exploited
A trader reportedly exploited a technical weakness in City Index's spread-betting platform and generated profits of about £630,000. Although the trader was fined for market abuse, the regulator also criticized City Index for failing to identify and remedy the vulnerability.
2002
Cyprotex spread-betting controversy
A large spread bet connected to Cyprotex's planned flotation became associated with the 'Plumber and Spaniard' controversy. The transaction prompted allegations of market manipulation and scrutiny by the Financial Services Authority. The principal trader was ultimately cleared in 2006, while City Index faced reputational scrutiny but was not formally penalized in the described proceedings.