Barclays Capital fined again by the FSA

Barclays Capital - Second Violation in Two Weeks

Barclays Capital – Second Violation in Two Weeks

Barely within a fortnight, Barclays Capital has been awarded another fine of £1.12 million, this time for mis-handling client’s money.

The Financial Services Authority has fined the investment banking arm of the British lender for failing to segregate its own money from the client’s money on intraday basis between 2001 and 2009.

Issuing a statement, FSA Managing Director Margaret Cole said: “Barclays Capital committed a serious breach of FSA client money rules by failing to segregate millions of pounds of its clients’ money for over eight years”.

“This posed a significant risk and the penalty reflects the amount of client money involved in this breach”, she added.

Though Barclays Capital accepted the breach, it said the company did not benefit in any manner. “The segregation error was corrected on discovery. No counterparties, clients, or financial reports were affected and Barclays Capital did not profit in any way”, said the company in a statement.

Barclay’s was fined £7.7 million by FSA barely a fortnight ago for mis-selling income focused funds to 12,000 clients. The clients had suffered significant losses on their investments during the financial crisis.

FSA has been criticized in the past for being too soft on banks and brokers and the regulator has been trying to get its act together since the crisis broke out.

US investment bank Goldman Sachs and French bank Societe Generale had been fined by the FSA for £17.5 million and £1.5 billion, respectively in 2010.

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