The City watchdog is reviewing allegations of fraud and other regulatory breaches made by a whistleblower against the Wall Street broking behemoth BGC Partners.
The Financial Conduct Authority (FCA) has been in contact with international regulators and law enforcement after it was handed material by a former senior employee about alleged wrongdoing at BGC, according to documents seen by The Telegraph.
The regulator has also sought advice from independent experts to help it examine the claims. It is understood that the FCA has been looking into these allegations since at least 2019.
While the FCA declined to comment on the details of its inquiries, it is understood that at least two former senior employees have reported allegations of fraud, a lack of supervision and controls and whistleblower retaliation at the US broker.
The Telegraph understands that the FCA is not conducting an enforcement investigation into BGC at present and has not served the company with a memorandum of appointment of investigators, as it is required to do when it commences formal enforcement proceedings.
It is not known whether the watchdog has yet made any decision about the veracity of the allegations made against BGC.
BGC declined to comment.
BGC is headquartered in New York and employs over 600 brokers in Canary Wharf.
The disclosure comes weeks after it was fined nearly 5m by the FCA for failing to properly monitor its traders.
That sanction is understood to be unrelated to the allegations...
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