FSA fines ActivTrades Plc £85,750 for client money failings
March 15, 2011
The FSA has fined ActivTrades Plc, a foreign exchange broker, pound;85,750 for failing to protect clients' assets adequately.
Under the FSA's client money rules, firms are required to keep client money separate from the firm's money in segregated accounts with trust status. Between 14 April 2009 and 2 September 2010, the amount of client money held by ActivTrades averaged pound;12.2 million. ActivTrades failed to ensure that this money was fully segregated on several occasions. In particular, between 29 January 2010 and 14 June 2010, client money totaling euro;800,000 was held in an account used for ActivTrades' own funds, which meant that it was not adequately protected.
Cross References
FSA: Final Notice