The Financial Services Authority (FSA) has fined discretionary fund managers McInroy & Wood Limited (MWL) £15,050 for breaching the regulator's client money rules.
Firms are required to keep client money separate from the firm's money in segregated accounts with trust status. A firm must have a trust letter from the bank holding its client money to ensure that in the event of the firm's insolvency client money is clearly identifiable, and is ring-fenced from the firm's own assets so it can be returned quickly. East Lothian-based MWL failed to obtain a trust letter for 22 segregated off-shore retail client bank accounts, which contained an average balance of £666,000. The error remained undetected by the firm for over four years, between May 2...
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