Barclays fined record £38 million for putting client assets at risk

Bank failed to correctly segregate client funds in investment division

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The Independent Online

Barclays has been handed a record £38 million fine after the City regulator said the bank had failed to safeguard client assets worth £16.5 billion.

This is the largest fine imposed by the Financial Conduct Authority (FCA) for failings to keep customers' money separate from the bank's own reserves. The penalty relates to operations in the bank's investment division, and did not affect retail customers.

The City watchdog said Barclays put client funds "at risk" that could have led to "incurring extra costs, lengthy delays or losing their assets if Barclays had become insolvent" and described the bank's behaviour as "unacceptable".

Barclays said it did not profit from it and clients did not suffer losses. 


The bank said the incidents took place between 2007 and 2012 and added that it had reported itself to the regulator. Meanwhile, the FCA confirmed it had received a 30 per cent discount on the fine because it reached a settlement at an early stage.

This is the second time that Barclays has been fined for its failing to correctly segregate client assets; on the previous occasion, the bank was told to pay £1.1 million. Barclays was also fined £290 million fine for Libor rigging in 2012.

A Barclays spokesman added: “In this matter Barclays fell short of what is expected. Barclays has subsequently enhanced its systems. No client has suffered any loss as a consequence of this weakness.”