The Financial Conduct Authority (FCA) has fined Charles Schwab’s UK business £8.96m for failing to protect client assets, carrying out a regulated activity without permission and making a false statement to the watchdog.
The FCA said the breaches, which occurred between August 2017 and April 2019, affected retail customers at the financial services firm. Client money was swept across from CSUK to its affiliate Charles Schwab & Co (CS&C), a firm based in the United States. The client assets, which were subject to UK rules, were held in CS&C's general pool, which contained both firm and client money and which was held for both UK and non-UK clients. According to the watchdog, CSUK carried out a regulated activity without permission, did not at all times have permission to safeguard and administer cust...
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