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The U.K.’s Financial Conduct Authority (FCA) imposed a £1.7-million fine on Mako Financial Markets Partnership LLP for weaknesses in its compliance systems and controls that undermined its ability to guard against abusive trading.

The sanctions follow a finding that, between the end of 2013 and November 2015, the firm executed £68.6 billion in over-the-counter (OTC) trades in Danish equities and £23.6 billion in Belgian equities on behalf of clients of a group of firms, known as Solo Group.

“The trading was circular, which is highly suggestive of financial crime,” the FCA said, noting that it appeared to be part of a dividend arbitrage scheme that allowed investors to illegally generate tax rebates by trading shares in alternative tax jurisdictions around dividend dates.

“Mako failed to spot clear red flags and facilitated highly suspicious trading that made it vulnerable to being used to support financial crime,” said Therese Chambers, joint executive director of enforcement and market oversight at the FCA, in a release.

The FCA said Mako did not dispute the FCA’s findings and agreed to settle, which qualified it for a 30% discount on its fine.

The case represents the eighth enforcement action brought by the FCA involving dividend arbitrage trading, which has resulted in £30 million in total sanctions. It also concludes the regulator’s investigations in this area.

“For U.K. financial services to grow and compete, investors need to have trust in it. That’s why it is vital we stamp out these unacceptable practices which risk the reputation and integrity of U.K. markets,” Chambers said.