FCA has fined Xcap Securities PLC £120,900 for breach of Principles 3 and 10 in respect of client money and assets. It found the firm did not properly segregate client money from its own, did not keep accurate records of client money and assets and did not carry out required reconciliations. FCA applied its new penalty policy when deciding the level of fine. This fine represented 2% of the firm's average client money balance and 0.2% of its average client asset balance over the breach period. The firm also settled at stage 2 of the executive settlement process, giving it a 20% discount. (Source: FCA Fines for Client Asset Failings)