PracticeConsultingCapita fined over poor anti-fraud controls

Capita fined over poor anti-fraud controls

£300,000 fine sets anti-fraud precedent

Capita Financial Administrators have been hit with a £300,000 by the
Financial Services Authority for poor anti-fraud controls over client identities
and accounts in its administration of collective investment schemes.

The poor controls contributed to a small number of significant actual and
attempted frauds against the company’s customers, the City watchdog said.

The FSA found that CFA had inadequately considered the risks posed by fraud
and had not maintained effective systems and controls to mitigate the risk of
fraud. This is the first time the FSA has fined a firm for failures of
anti-fraud systems and controls.

Philip Robinson, the FSA’s financial crime sector leader, said: ‘With fraud
becoming an increasing menace, firms must fully understand the risks they face
and have robust anti-fraud controls in place.’

CFA acts as a third party administrator that is responsible for carrying out
client instructions to buy and sell investments.

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