FCA fines Charles Schwab £9m for false claims
By
Justin Cash
21
st December 2020
12:31 pm
The FCA has fined Charles Schwab UK over a raft of compliance and safeguarding failures, including making a false statement to the regulator.
The broker has been hit with a £8.96m penalty for failures that ranged from not adequately protecting client assets to carrying out a regulated activity without permission.
A change in Charles Schwab’s UK business model between August 2017 and April 2019 led to client money being transferred back to the firm’s US affiliate.
However, firm and client money, across both UK and US clients, was held in one general asset pool, which meant clients’ assets under UK rules were not sufficiently protected.