Highest fine to date by the FCA to Barclays Bank

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The Financial Conduct Authority (FCA) has fined UK Bank Barclays £38m for failing to protect customer’s money worth £16.5bn after the regulator identified ‘significant weaknesses’ in the bank’s systems and controls.
The Financial Conduct Authority (FCA) has fined UK Bank Barclays £38m for failing to protect customer’s money worth £16.5bn after the regulator identified ‘significant weaknesses’ in the bank’s systems and controls. Barclays agreed to settle for a 30% discount, had this not been arranged the fine would have been over £53 Million. (€68 Million Euros)

This broke the record as the highest fine on record by the FCA or its predecessor the Financial Services Authority for client assets breaches.
Barclays’ records did not correctly reflect which company within its investment banking division was responsible for the assets in the accounts.

It relates to deficiencies in the way Barclays’ investment banking division handled client monies between 2007 and 2012 which meant clients risked incurring extra costs, lengthy delays or losing their assets if Barclays had become insolvent.The FCA said these failings were compounded by flaws in account naming or incorrect data that suggested assets belonged to Barclays instead of its clients.

‘All firms should be clear after Lehman that there is no excuse for failing to safeguard client assets.’