FSA warns firms over 'unacceptable' handling of client assets

In a report accompanying the letter, the regulator highlights a series of failings across firms it visited last year. These include poor management oversight and control, a lack of established trust status for segregated accounts, unclear arrangements for the segregation and diversification of clients' money, and incomplete or inaccurate records, accounts and reconciliations. Today's letter follows one sent to firms in March 2009, which explained a firm's obligation to protect client money and assets. Last year the FSA visited a range of firms and found a number of failings, leadi...