08/12/2011 - Transact Fined 3.5m By FSA

Transact Fined 3.5m By FSATransact Fined 3.5m By FSA.

Transact has been fined £3.5m by the Financial Services Authority (FSA) for failings relating to the protection of client money. The fine followed a visit to Transact’s parent company, Integrated Financial, when it found that although it had segregated client money from its own money when received, it had failed to comply with client money rules between December 2001 and end of June 2010.

During this period, the amount of client money held by Integrated Financial averaged £508m. Integrated Financial did not perform any client money calculations between 2001 and 2010 and as a consequence failed to identify or fund any shortfalls in its client money bank accounts. This meant that money belonging to one client was used to cross fund other clients and resulted in clients’ money being at risk if Integrated Financial became insolvent, according to the FSA.

The company will pay the fine from its own resources, according to Ian Taylor, chief executive officer at Integrate Financial, he also stated that no client has suffered detriment or loss as a result of the breaches.


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