In yet another round of penalties for the British bank, Sky News reports that Barclays will pay a GBP38 million ($62 million) fine for failing to segregate clients' funds correctly - i.e. "Corzining" its clients. The Financial Conduct Authority (FCA) will announce the small but record (higher than the $50 million fine for JPMorgan over its "corzining") penalty tomorrow. If you are a Barclays client, have no fear, for as they explain, "losses for Barclays’ clients were theoretical rather than actual."
Barclays will be hit by the latest in a string of financial penalties this week when the City regulator hands out a £38m fine for failing to ensure adequate protection for clients’ funds.
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The punishment relates to the bank’s failure to segregate clients’ asset properly and maintain adequate records, the second occasion on which Barclays has been fined for such an offence after a £1.1m penalty three years ago.
The FCA is understood to have concluded that a much more severe penalty is necessary in order to serve as a deterrent to other firms which continue to demonstrate inadequate controls over clients’ assets.
Insiders said on Monday that the regulator’s announcement would make clear that losses for Barclays’ clients were theoretical rather than actual.
The penalty imposed on Barclays is higher than a £33m fine with which JP Morgan was hit in 2010 for similar misconduct.
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One source said that the £38m figure included a 30% discount to reflect Barclays’ co-operation with the regulator.
Barclays and the FCA declined to comment.
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Speechless... 2nd offsense...
Just a cost of doing business (and likely tax-deductible expense) - great news... and surely a deterrent in such vast amounts.
