THE CITY regulator used new penalty powers for the first time yesterday to fine a firm £120,900 for co-mingling company cash with customers’ money.
The Financial Conduct Authority dolled out the penalty to junior stock market listed Xcap Securities for breaching its newly installed client asset rules.
It said Xcap, which deals with retail investors, had failed to adequately protect customers’ money and assets between 29 June 2010 and 31 August 2011 by not properly segregating client money from its own.
Director of enforcement and financial crime Tracey McDermott said: “This is the first case that the FCA has brought for breaches of the client assets rules using our new penalty regime.
“The new levels of penalty are expected to result in larger fines, demonstrating the seriousness with which we view these failures and serving as a stronger deterrent to firms.”
Xcap said: “Xcap has always been and remains committed to the safeguarding of client assets.”