Barclays fined £38m for putting client assets at risk
89The Financial Conduct Authority (FCA) has imposed its biggest fine to date having found that Barclays failed to protect clients’ custody assets worth £16.5 billion.
The bank has to pay almost £38 million for exposing its client to financial loss in the event of its failure.
The FCA’s director of enforcement, Tracey McDermott, comments: “Barclays failed to apply the lessons from our previous enforcement actions, numerous industry-wide warnings, and exposed its clients to unnecessary risk. All firms should be clear after Lehman that there is no excuse for failing to safeguard client assets.'”
In its investigations, the regulator identified 95 custody accounts across 21 countries where records did not correctly reflect which company within its investment banking unit was responsible for the assets in the accounts.
Failings were compounded by flaws in account naming or incorrect data that suggested assets belonged to Barclays instead of its clients.