UK regulator gives JP Morgan record fine

June 3, 2010 7:28:16 AM PDT
LONDON (AP) - Britain's financial services watchdog has fined J.P. Morgan Securities Ltd. 33.32 million pounds ($49 million) for mishandling clients' funds. The fine announced Thursday is the largest penalty ever handed out by the Financial Services Authority.

The regulator says that J.P. Morgan failed to segregate the client money held by its futures and options business for more than six years.

Under the FSA's client money rules, firms are required to keep client money separate from the firm's money in segregated accounts with trust status to protect the client funds if the firm goes bankrupt.