FCA slaps Charles Schwab UK with £9m fine over compliance failures

Breaches affected retail customers

Pedro Gonçalves
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The FCA said the U.S.-listed financial firm failed to protect client assets
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The FCA said the U.S.-listed financial firm failed to protect client assets

The Financial Conduct Authority (FCA) has fined Charles Schwab’s UK business £8.96m for failing to protect client assets, carrying out a regulated activity without permission and making a false statement to the watchdog.

The FCA said the breaches, which occurred between August 2017 and April 2019, affected retail customers at the financial services firm. Client money was swept across from CSUK to its affiliate Charles Schwab & Co (CS&C), a firm based in the United States.  FCA orders Blue Gate to pay over £200,000 in compensation to Connaught investors The client assets, which were subject to UK rules, were held in CS&C's general pool, which contained both firm and client money and which was held for both UK and non-UK clients.  According to the watchdog, CSUK carried out a regulated activity withou...

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