BlackRock Fined £9.5 Million

Sep 12 2012 | 1:04pm ET

British regulators have fined BlackRock £9.5 million (US$15.2 million) for failing to adequately protect client assets in the wake of its acquisition of Merrill Lynch Investment Managers six years ago.

The Financial Services Authority said that BlackRock had failed to heed British laws requiring it to obtain letters from third parties assuring that client money is both identifiable and protected in the event of a bankruptcy. No BlackRock clients lost any money in the matter.

BlackRock apologized for its oversight.

“This is not the first time we have seen the impact on client money overlooked as part of a reorganization,” the FSA's Tracey McDermott said. “The fine imposed today should remind all firms of the critical importance we place on ensuring proper protection of client money at all times.”


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note