If you work in the financial services, insolvency advice could help you to avoid facing penalties – even if your company remains solvent throughout.
The Financial Conduct Authority has fined a retail investment firm over £120,000 for failing to protect clients’ money and assets properly.
Among the breaches, committed between June 29th 2010 and August 31st 2011, the company is deemed to have inadequately separated client money from its own.
Had the firm entered into insolvency during this time, the FCA says “its clients could have faced difficulties and delay in recovering their money and assets”.
Tracey McDermott, director of enforcement and financial crime at the FCA, says this is the first enforcement action brought under the new penalty regime.
“The new levels of penalty are expected to result in larger fines, demonstrating the seriousness with which we view these failures,” she says.
For companies affected by the new penalty regime, and by the introduction of the FCA as the financial services regulator, insolvency advice can help to identify any similar issues – even in healthy companies – and avoid future penalty sanctions being handed down.
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