View more on these topics

FCA fines investment firm £121k over client money failures

FCA logo original size

The Financial Conduct Authority has fined a stockbroking and asset management firm £120,900 for failing to protect client money and client assets.

Xcap Securities, a retail investment and capital markets business, is the first firm to be fined over client money failures under a new penalty regime brought in by the FCA.

The new penalty regime for client money rule breaches uses a percentage of average client money and client safe custody asset balances as part of a five step process to decide the level of fines.

In Xcap’s case, the fine is based on 2 per cent of its average client money balance plus 0.2 per cent of its average client asset balance over the period of the breaches.

Between 29 June 2010 and 31 August 2011, Xcap failed to properly segregate client money from its own, failed to keep accurate records and accounts of client money and client assets, and did not carry out accurate client money reconciliations.

The failures risked clients facing difficulty or delay in recovering their money if Xcap were to become insolvent.

FCA director of enforcement and financial crime Tracey McDermott says: “This is the first case the FCA has brought for breaches of the client assets rules using our new penalty regime. The new levels of penalty are expected to result in larger fines, demonstrating the seriousness with which we view these failures and serving as a stronger deterrent to firms.   

“We have been very clear about our expectations of firms that have responsibility for investors’ money and safe custody assets. Xcap failed to meet the required standards from the very outset of its business and continued to have widespread failures for a number of months.”

Recommended

3

Ian McKenna in San Fran: New adviser tech coming our way

Having been to five Finovate events in the last 15 months, this latest show in San Francisco has been without doubt the most stimulating. A wide range of innovations having been shown which reinforce my view that it is not if but when we will start to see dramatic change in the way that both […]

Barclays to launch fee-free 2.99% five-year remortgage

Barclays will tomorrow launch a new fee-free five-year fixed rate remortgage product at 2.99 per cent and will cut the rates on some of its fixed rate mortgages by up to 0.3 per cent. The five-year deal is available to 60 per cent loan-to-value. It is available for loans between £100,000 and £1m. Following the […]

2

Advisers: Hannant’s promotion could mark new era at Apfa

Advisers say Chris Hannant’s appointment as Apfa director general brings a more grounded style of leadership to the trade body, but some warn he will struggle to unite a fragmented adviser community. Last week, Apfa announced Hannant will take up the role of director general with immediate effect. He joined the trade body in January […]

Alan-Lakey-MM-blog-grey-250x255.jpg
25

Alan Lakey: Trendy phrases leave me cold

Maybe it is just me but increasingly I find myself irritated by the seemingly irresistible urge to use and promote fashionable phrases, magic metaphors and cool buzzwords. Some of these are technical terms that the industry draws on to provide added gravitas whereas others are US imports, often sourced from the marketing industry. Okay, it’s […]

Europe 2017: Value, large-caps & liquidity

Joshua Ausden, Head of Client Investment Strategy, Neptune Read more here Important Information – for Investment Professionals Only. Not for Retail Clients.Investment risksNeptune funds may have a high volatility rating and past performance and forecasts are not a guide to future performance. These are Neptune’s views and as such this document is deemed to be […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. The rules re client assets are straightforward and it staggers me at how many firms breach these rules

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com