A German court has handed two British traders suspended sentences, in a first-of-its kind judgment that followed the criminal case at the centre of the major cum-ex fraud scandal.

The case goes to the heart of the ongoing cum-ex scandal, in which high profile banks were found to have claimed twice on tax rebates, costing Germany several billions.

The court previously stated that the tax evasion scheme was not permitted under German tax law, but it had not ruled on the question of whether it was a criminal matter. Yesterday's ruling, however, delivers a decisive blow to the defendants in the case.