The Financial Services Authority (FSA) has fined Towry Investment Management £494,000 for providing misleading information to the regulator and for client money breaches.
Towry wrongly claimed it was compliant with the FSA's rules on treating client money, set out in its Client Asset Sourcebook (CASS). The firm made its claim in its response to the FSA's Dear CEO letter on complying with the rules. However the regulator discovered Towry's non-compliance on a CASS visit to the firm in November 2010. Towry's failure to provide an accurate response to the FSA breached of Principle 11, which requires firms to deal with the FSA in an open and cooperative manner. The failure of the firm to treat client money in the correct way breached Principle 10. ...
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