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View the article online at http://citywire.co.uk/wealth-manager/article/a748252

A 'wake up' call: the implications of Invesco's £18.6m FCA fine

by Dylan Lobo on Apr 28, 2014 at 14:48

‘Large firms that generate high levels of revenue now face eye-wateringly high fines because the FCA can fine them a percentage of their revenue. This new approach was introduced by the FCA in 2010 and we are now seeing more of these higher fines come through the pipeline,' Kovas said.  

‘There is now much more money at stake for firms that find themselves in the FCA’s firing line.’

Back in 2012, BlackRock was fined £9.5 million for failing to ensure that £1.3 billion of client assets were properly ringfenced over a three year period.

More recently Aberdeen Asset Management was fined £7.2 million in November 2013 for failing to protect client money and State Street was fined £22.9 million this January for 'hidden' mark-ups.   

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1 comment so far. Why not have your say?

Gillian Cardy

May 06, 2014 at 16:39

The FCA is not afraid to fine them, said Mr Kovas (ex FSA as I recall) except when it's Capita and the regulator has agreed a deal which it could never have agreed if it had understood the enormity of the Arch cru problems and if it had been prepared to admit what its own internal staff already knew but chose to paper over ... before lumbering advisers with all the blame for ... umm ... breaking the rules on liquidity, risk management, cash, asset allocation, valuations, pricing ... surprising how familiar it all sounds isn't it?? And I wouldn't be surprised if IP is somewhat dis-chuffed at being forced to pay when competitors are let off the hook, by the regulator if not the investors themselves,

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