BlackRock fined on cash protection

BlackRock Investment Management, the fund manager, has been fined £9.5m by the City watchdog for failing adequately to ring-fence client money in the event of insolvency.

The Financial Services Authority (FSA) said BlackRock had failed to gain trust letters from banks holding money market deposits, which would have prevented the speedy return of the cash if it had gone bust. More than £1.3bn a day went unprotected, the FSA said. Tracey McDermott, risk director, said: "Protecting client money should be at the top of every firm's agenda."