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

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...