A foreign exchange company has been fined by the FSA (Financial Services Authority) for failing to operate segregated accounts which are to keep clients money separate from its own finances.
ActivTrades Plc ( www.activtrades.co.uk ) have been ordered by the FSA to pay £85,750 after it was found to be breaching FSA authorised rules by not placing client money in a segregated account with trust status.
This means some client money would have been at risk had the firm become insolvent which was the case earlier this year with Interchangefx
Linda Woodall, FSA director of small firms, said: "It is essential for firms to adhere to our client money rules and our recent action in this area shows our continuing focus on the importance of managing and protecting client assets adequately.
"Ensuring the necessary client money safeguards are in place is a key element of consumer protection, and firms of all sizes must ensure that any client money they hold is properly segregated."
Earlier this year, Barclays Capital was fined £1.12 million by the FSA for failing to keep client money separate.
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