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Barclays hit with record £40m fine

BARCLAYS was hit with a record £37.7 million fine yesterday for failing to provide adequate protection for its clients’ funds.

The Financial Conduct Authority (FCA) said the bank put £16.5 billion of client assets at unnecessary risk in the event that the bank became insolvent.

It is the highest fine ever imposed by the FCA or its predecessor the FSA for client assets breaches, reflecting “significant weaknesses” in the systems and controls at the investment banking arm between 2007 and January 2012.

The regulator said Barclays had failed to apply lessons from previous enforcement actions, as well as numerous industry-wide warnings.

FCA director of enforcement Tracey McDermott said: “All firms should be clear after Lehman that there is no excuse for failing to safeguard client assets.”

Barclays said it did not profit from the issue and no customers lost out.

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