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FSA hits JPMorgan Securities with record fine

THE Financial Services Authority has hit on JPMorgan Securities with a record £33.32m for mishandling client money.

Under the FSA's client money rules, firms are required to keep client funds separate from their own – in different accounts with trust status.

The aim is to protect client money in the event of the firm's insolvency.

But the FSA found that JPMorgan Securities failed to segregate the client money held by its futures and options business with JPMorgan Chase Bank.

Margaret Cole, FSA director of enforcement and financial crime, said: "JPMorgan Securities committed a serious breach of our client money rules by failing to segregate billions of dollars of its clients' money for nearly seven years."

"The penalty reflects the amount of client money involved in this breach."