Barclays Fined for Breaching Client Money Rules

The UK Financial Services Authority (FSA) has announced that it has levied a £1.12 million fine on Barclays Capital Securities Ltd (Barclays Capital) “for failing to protect and segregate on an intra-day basis client money held in sterling money market deposits”. Between 2001 and 2009, client money maturing from Barclays Capital’s sterling money market deposits were mixed with its own funds on a daily basis, and over this period the amount not segregated increased from £6 million to £387 million. The client’s money would have been at risk of loss should the firm have become insolvent during this period.  
FSA’s media release (26 January 2011)
(Source: FSA)