LONDON, Sept 3 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.