City clearing group fined for poor controls
Kyte Group hit with £250,000 fine
City watchdog, the Financial Services Authority has fined London-based
clearing company, The Kyte Group Limited, £250,000 for systems and controls
failings resulting in inadequate client money protection and poor accounting
Between December 2001 and September 2003 Kyte failed properly to perform its
client money reconciliations or client money calculations, an FSA investigation
The company was also found to have made a £7.2m misstatement on its April
2003 balance sheet, the result of failing to make and retain adequate accounting
Margaret Cole, director of the FSA’s enforcement division said Kyte had been
given ‘warnings that improvements needed to be made to its client money
procedures and despite reassurances and a number of updates the required
standard was not reached’.
‘Breaching our rules and principles will not be tolerated and we will not
hesitate to take action when we find consumers or markets at risk,’ she added.