On April 15, 2015, the Financial Conduct Authority announced that it had fined The Bank of New York Mellon, London Branch and The Bank of New York Mellon International Limited, £126 million for failing to arrange adequate protection for the safe custody of client assets and for failing to comply with the FCA custody rules as set out in the Client Assets Sourcebook under which firms are required to maintain records and reconcile accounts at regular intervals on a legal entity-specific basis. The breaches occurred between November 1, 2007 and August 12, 2013. The FCA’s custody rules aim to ensure that the wind-down of an insolvent firm could be carried out in an orderly manner with minimum loss to clients and as little delay in the return of assets to clients. According to the FCA, the BNY entities are the third and eighth largest custody banks in the UK and a failure of either firm could have a severe impact on the UK market and therefore their breaches were considered to be very serious.

The FCA announcement and final notices are available at: http://www.fca.org.uk/news/fca-fines-the-bank-of-new-yorkmellon-london-international-126-million