FSA fines Towry £494,000
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Source: Michael Walter/Troika
The FSA has fined Towry Investment Management £494,000 for providing misleading information to the FSA and for client money breaches.
The fine comes after Towry responded to a Dear CEO letter from the FSA setting out its treatment of client money rules.
Towry stated that it was fully compliant, but after a visit from the FSA in November the regulator found that the firm was in breach of its client money rules.
The FSA says Towry failed to ensure its response to the Dear CEO letter was properly considered, resulting in inaccurate information being provided to the FSA.
The regulator says Towry’s breaches could have placed clients’ money at risk if the firm had become insolvent because it failed to maintain adequate records.
The FSA adds there has been a high level of awareness in the financial services industry of the importance of handling client money properly since the collapse of Lehman Brothers in September 2008. It says failure to do so is not acceptable.
FSA director of enforcement and financial crime Tracey McDermott says: “Open and accurate communication with the FSA is of fundamental importance to the functioning of the regulatory system. It should go without saying that taking steps to ensure information provided to us is properly considered, up to date and correct is a basic regulatory requirement.
“It is very disappointing that Towry failed to do so particularly in an area of such regulatory importance. Firms should be in no doubt about how seriously we regard such failures.”
Towry chief executive Andrew Fisher (pictured) says: “While I am pleased to confirm that there has been no client detriment or loss of any client money at all, it is regrettable that we have made these errors. We have co-operated fully with the FSA and have made changes to our processes, working with our auditors KPMG to address the problems identified.”
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Readers' comments (3)
Anonymous | 29 Sep 2011 5:16 pm
By hook or by crook they will get you in the end. Perhaps it pays not to be so outspoken at times.
Cynical, well maybe a little.
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Anonymous | 30 Sep 2011 5:56 am
I don't think there will be too many shedding a tear for this particular company. I might be wrong...
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Anonymous | 30 Sep 2011 10:17 am
It seems that there is no value in Money Marketing or any other publication actually pointing out the fact that Towry was OVERFUNDING client accounts. The above article also does not point out the FACT that the full FSA statement admits that no client suffered any loss as a result of this technical issue relating to end of day reconciliations.
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