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

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note