FSA has fined Integrated Financial Arrangements plc £3.5 million for failings in relation to its protection of client money. It found that the firm, which operates a large wrap platform, had failed to comply with its client money requirements over a period of nine years, from the introduction of FSMA to mid-2010. Although the firm had segregated client money from its own, it did not perform any client money calculations and so could not identify any shortfalls in its client money accounts. This resulted in clients’ money being used to fund other clients and being put at risk if the firm had become insolvent. FSA also found the firm did not have adequate risk management procedures and had not put in place the right trust documentation for three of its 28 client bank accounts. FSA also ordered a skilled person’s report. The firm got a 30% discount for its agreement to settle at an early stage. FSA said no client suffered loss as a result of the breaches. (Source: FSA fines Integrated Financial Arrangements plc)
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FSA fines £3.5 million for client money breaches
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