UK watchdog fines Aberdeen Asset Management 7 million pounds
LONDON, Sept 3
LONDON, Sept 3 (Reuters) - Britain's markets watchdog has fined Aberdeen Asset Management 7.2 million pounds ($11.2 million) for failing to protect client money properly over three years to 2011.
The Financial Conduct Authority said the asset manager failed to identify and properly protect customer money placed in money market deposits with third party banks between Sept. 2008 and Aug. 2011.
The average daily balances affected by the breach of FCA rules was 685 million pounds.
"Proper handling of client money is essential in ensuring that markets function effectively. Where they fall short of our standards, firms should expect the FCA to step in and take action to avoid a poor outcome for their clients, and ultimately, consumers," FCA director of enforcement, Tracey McDermott said in a statement.
The company said it regrets what happened and that no clients sufered any loss from the breaches.
The collapse of Lehman Brothers bank in 2008 highlighted the difficulties customers faced in getting their money back if an institution gets into difficulties.