London, June 3 (DPA) Investment bank JP Morgan in London has been given a record fine of 33.3 million pounds ($48.2 million) by Britain’s Financial Services Authority (FSA)for failing to protect clients’ money, the City regulator said Thursday.
The penalty was imposed after JP Morgan Securities failed to segregate client cash from its own money over a period of seven years, the FSA said.
Margaret Cole, FSA director of enforcement and financial crime, called the error a ‘serious breach’ of FSA rules aimed at protecting clients from losses in the event of insolvency.
‘The penalty sends out a strong message to firms of all sizes that they must ensure client money is segregated in accordance with FSA rules,’ she said.
There were several more cases in the pipeline, Cole added.
However, JP Morgan had reported the error once it was uncovered and worked with the FSA during the investigation, the FSA said.
The misconduct had not been deliberate and no clients had suffered losses. These factors meant that JP Morgan had been granted a reduction of 30 percent on the orginal fine of 47.6 million pounds.
