FSA Fines BlackRock £9.5M For Mixing Client Funds

Law360, New York (September 11, 2012, 8:21 PM EDT) -- Asset management firm BlackRock Inc. received a £9.5 million fine ($15.2 million) from Britain's Financial Services Authority on Tuesday for failing to protect over £1 billion of client money in violation of U.K. rules.

The FSA said company subsidiary BlackRock Investment Management (UK) Ltd. failed to obtain legally required trust letters — which separate client money from investment firm assets and ensure full and prompt return of client funds in the case of firm insolvency — when the firm deposited clients’ money in third-party banks....
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