Completing your breach register. Barclays were fined for custody problems, some Â£38m. That makes six fines in five years, with a seventh being challenged. The fine was in respect of approximately Â£16.5 billion of safe custody assets held in 95 external accounts with third-party sub-custodians. There was an average holding of Â£173m in each account. Given that amount you might have thought the customers wouldnâ€™t need a regulator to do their due diligence for them. Of more interest to IFAs is this. The regulatory action was started following examination of the Barclays Bank breach register. Barclays found the problem, sorted it out and reported it to the FCA. And they still got fined. Barclays are the most fined bank of all â€“ and they still got fined. So although you may be feeling smug that another former competitor is getting thumped, may we ask: Whereâ€™s yours?
(Answer below for members of IFAC and users of ours sytem.)
The Bank reported the breaches and failings to the FCA. Part of the fine was for inaccurate reporting to FCA. Are you sure that yours is accurate or consistent?
There was no loss to the customers. The argument that clients like it or what you are doing doesnâ€™t hold. Nor is the argument that they donâ€™t complain a workable solution.
FCA state "putting customers at risk of misselling" as their prime motivation in regulatory action. This is repeated time and again, almost by the week. Barclays Bank breached seven FCA rules fromâ€“ CASS 6.2.1R to 6.56R. But most recent fines do not involve rule breaches at all just breaches of principle.
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