SEI Investments fined £900,000 for failing to protect client funds

 
Tim Wallace
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INVESTMENT manager SEI was fined £900,000 by the Financial Conduct Authority yesterday for failing to protect client money properly.

The City watchdog found that from November 2007 to October 2012, SEI repeatedly failed to perform its internal reconciliations, failed on several occasions to ensure any shortfall or excess identified was covered by the end of the day, and failed to train staff properly to oversee client money.

Had SEI become insolvent on one of those occasions, it could have been more difficult for investors to get their money back.

“Whilst SEI regrets that this situation arose, at no time was any loss or detriment caused to any of SEI’s customers,” the firm said in a statement.

“All client money was fully segregated from SEI assets at all times, with appropriate trust protection.”

The FCA said the fine would have come in at £1.29m if SEI had not settled at an early stage, earning a 30 per cent discount.