Barclays Fined Record £38m In UK For Failing To Keep Clients' Money Separate From Its Own

Barclays has been fined a record £38m by the City regulator for failing to keep its clients' money separate from its own.

The fine comes just three years after Barclays paid out £1.1m for a similar issue.

The Financial Conduct Authority (FCA) said the bank had breached rules on handling client money between November 2007 and January 2012.

It is the biggest fine ever issued for this particular offence.

The FSA, the FCA's predecessor, fined JP Morgan £33.3m over the issue in 2010, the then biggest penalty.

The penalty comes as the bank tries to defend itself against fraud charges in the US in relation to the sale of mortgage bonds and follows a £26m fine in May for fixing the gold price.