FCA has fined Aberdeen Asset Managers Limited and Aberdeen Fund Management Limited a total of £7,192,500 for failing to recognise and therefore failing to properly protect client money over a period of three years. The money was placed in Money Market Deposits with third party banks between September 2008 and August 2011 and the average daily balance affected was £685 million. The firms had concluded the money was not subject to client money rules and as a result did not have in place with the relevant banks the documentation the client money rules required. Also the firms were inconsistent in their naming of accounts, making it difficult to track who owned the funds. The firms had confirmed to the then Financial Services Authority in 2009 that they were compliant with client money rules. FCA was particularly concerned not only because of this and because of the firms' reputation but also because new employees had flagged the potential problem twice before the firms took action following a query from a third party bank. In mitigation, once the firms took advice on the matter, they self-reported to the regulator and co-operated with the investigation. The firms have now revised their practices so they comply with the mandates requirements of the client money rules. (Source: FCA Fines Fund Managers for Client Money Failings)