UK Fines Barclays $1.8M For Mixing Client Funds

Law360, New York (January 26, 2011, 1:44 PM EST) -- U.K. regulators slapped Barclays Capital Securities Ltd. with a £1.12 million ($1.79 million) fine Wednesday for failing to segregate as much as £752 million ($1.2 billion) a day in client money from the bank's own funds.

The Financial Services Authority said Barclays Capital had for eight years violated rules requiring that firms keep client money separate from their own money in distinct accounts with trust status.

From December 2001 to December 2009, Barclays Capital failed to separate out client money from its own money-market deposits on...
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