“Cum-ex” is a term that many people outside trading floors have not (yet) heard of. It refers to an aggressive variation of dividend arbitrage in various European jurisdictions, now considered illegal in most countries. Between 2002 and at least 2012, tax authorities were defrauded of an estimated 55 billion euros. The true risks from these dealings for participating financial services firms around the world are now starting to emerge.
In an article for Bloomberg Tax, our James Siswick and Alexandra Will introduce cum-ex and highlight the complexity and magnitude of the issue and the associated risks for financial services firms. We will continue to explore the topic in a series of articles over the coming months. In the series, we will explain the functioning of the schemes, assess the key risks in detail, discuss the actions senior management and heads of legal and compliance should take to protect their organisations, and how an internal investigation could successfully be conducted in light of the complex issues at hand.
How we can help
Guidehouse’s Global Investigations & Compliance team includes professionals with deep investigative experience, including former regulators, prosecutors, in-house experts, technology specialists, and consultants. Our experts have led some of the largest high-profile data-driven financial crime investigations in the past 15 years. We have assembled a multidisciplinary team to focus on this issue, including former traders, data specialists, financial services investigators, and forensic accountants, including team members with German legal qualifications and language skills.
Special thanks to contributing author: Manuel Fonseca Soares.