FSA has fined Christchurch Investment Management Limited (the firm) £26,000 and its former compliance officer David Thornberry £11,550 for breaches of its client money rules. FSA found the firm breached Principles 3 and 10 for over three years by failing to ensure adequate protection of client money. FSA found this is because the firm had insufficient knowledge and oversight of its compliance with FSA's client asset rules (CASS) and did not take reasonable steps to familiarise itself with them. The firm appointed Mr Thornberry, one of its directors, to the compliance oversight function with responsibility for client money compliance oversight, but he had no experience and it did not provide him with any training. It expected the compliance manager to report to him, and significantly cut back on external compliance support. The compliance manager had a broad range of duties, which FSA considered led to a number of risks. FSA acknowledged that no client actually lost money, and that the firm has now put in place sufficient controls over its client money process and has appropriately assigned individuals' duties. In addition to fining the firm, FSA fined Mr Thornberry for breaches of the Principles for Approved Persons and banned him from undertaking the compliance oversight function. (Source: FSA Fines Firm and Compliance Officer for Client Money Breaches)