Integrated Financial Arrangements Ltd

FCA action

fine

1

most recent

December 2011

• Fined on 12 December 2011

  The FSA imposed a penalty on the firm for breaches of Principle 3, Principle 10 and associated FSA Rules set out in the CASS sourcebook. The breaches related to failings by the firm relating to its management and protection of client money. IFA did not perform any internal reconciliation (client money calculations) between 2001 and 2010 and as a consequence failed to identify or fund any shortfalls in its client money bank accounts. This meant that money belonging to one client was used to cross fund other clients and resulted in clients money being at risk if IFA became insolvent. IFA also failed to put in place adequate trust documentation for three of its 28 client bank accounts which also put client money at risk in the event of the firm's insolvency. Furthermore, IFA failed to put in place adequate risk management systems in relation to client money. The FSA required IFA to appoint a skilled person under section 166 to review its client asset processes, and IFA has agreed to comply with the skilled person's recommendations. No clients of IFA have suffered any losses as a consequence of the breaches identified. The Final Notice, which sets out the reasons for the action can be found at the following link.