The Financial Conduct Authority has fined Aberdeen Asset Managers and Aberdeen Fund Management £7.2m for failing to protect client money.
The failings relate to money held in money market deposits. Clients often hold such deposits when they have big cash balances in investment portfolios.
Between 2008 and 2011, Aberdeen did not get correct documentation from third parties when setting up deposits, and used inconsistent naming creating uncertainty over fund ownership. The average daily balance affected was £685m.
The failures meant clients were at risk of delays in having money returned if Aberdeen became insolvent. Aberdeen wrote to the FSA in 2010 saying it was fully compliant with the rules.
In a statement, Aberdeen says: “No clients suffered any loss as a result of the breaches. We regret the situation arose, have co-operated fully with the FCA and have amended our procedures regarding bank deposits following the FCA’s guidance.”