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BNY Mellon Units Fined $185 Million for Custody Rule Compliance Failures

Jaclyn Jaeger | April 17, 2015

The U.K.’s Financial Conduct Authority this week fined two Bank of New York Mellon firms a total of £126 million ($185 million) for failing to comply with the FCA’s Custody Rules.

The FCA’s Client Assets Sourcebook (Custody Rules) protects safe custody assets if a firm becomes insolvent and ensures those assets can be returned to clients as quickly and efficiently as possible. The Custody Rules require regulated firms to keep entity-specific records and accounts, which insolvency practitioners use in the event of insolvency to identify those clients whose assets are safeguarded and are due to be returned.

According to the FCA, Bank of New York Mellon’s London Branch (BNYMLB) and The Bank of New York Mellon International Limited (BNYMIL) engaged in a number of compliance failings, including:

  • Failing to take the necessary steps to prevent the...
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