Barclays is set to be fined close to £38 million for failing to keep clients’ money separate from its own three years after the bank paid a penalty of £1m over the same issue. The fine – a record for this type of misconduct – is expected to be announced by the UK’s Financial Conduct Authority. It follows a £33 million fine for JPMorgan Chase in 2010 for failing to segregate up to $23 billion in client money. Barclays is being fined for intermingling billions of pounds of client money with its own funds in its investment bank between 2007 and 2012. This is frowned upon by the regulator because it would be harder to repay customers if the bank collapsed. The sums involved at Barclays are lower than at JPMorgan, according to a person familiar with the situation, but the British bank’s bigger fine reflects the FCA’s determination to punish recidivism as well as the overall increase in the size of penalties
