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£38million Barclays Fine For Client Asset Risks

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£38 Million Barclays Fine for Client Asset Risks - 23rd Sept 2014

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​Barclays Bank Plc has been fined £37,745,000 by the Financial Conduct Authority (FCA) for failing to properly protect clients' custody assets worth £16.5 billion. As a result clients risked incurring extra costs, lengthy delays or losing their assets if Barclays had become insolvent. This is the highest fine ever imposed by the FCA or its predecessor the FSA for client assets breaches, reflecting 'significant weaknesses' in the systems and controls in Barclays' Investment Banking Division between November 2007 and January 2012 and the number of affected accounts. David Lawton, the FCA's director of markets, said: "Safeguarding client assets is key to maintaining market confidence if firms fail — Barclays lack of focus on the rules was unacceptable. Our on-going scrutiny of firms' compliance reflects the importance of the regime, which protects custody assets worth £10 trillion held in the UK.

Source - Complinet