FSA fines CFA £300,000 in first anti-fraud controls case

The FSA says CFA had inadequately considered the risks posed by fraud and had not maintained effective systems and controls to mitigate the risk of fraud. This is first time the regulator has fined a firm for failures of anti-fraud systems and controls. It says the failures in controls by CFA contributed to a small number of significant actual and attempted frauds against the firm’s customers, which appear to have been facilitated by “colluding” CFA staff. The initial frauds were not discovered by CFA but were brought to the firm’s attention by clients. In August 2004 CFA discovered a...