As per the charge, Barclays’ Investment Bank Division had failed to protect client’s custody assets worth £16.5bn during the period from November 2007 to January 2012, placing clients under risk of incurring extra costs, delays or losing their assets.
FCA enforcement and financial crime director Tracey McDermott said: "Barclays failed to apply the lessons from our previous enforcement actions, numerous industry-wide warnings, and exposed its clients to unnecessary risk.
"All firms should be clear after Lehman that there is no excuse for failing to safeguard client assets."
According to FCA, Barclays had failed to adopt FCA-imposed client asset rules and requirements while opening 95 custody accounts in 21 countries and also failed to set up legal arrangements.
Barclays Spokesperson said: "In this matter Barclays fell short of what is expected under the CASS Regulations.
"Barclays identified and self-reported to the FCA the issues giving rise to the FCA’s findings and we accept their conclusion. Barclays has subsequently enhanced its systems to resolve these issues and to ensure we have the requisite processes in place. No client has suffered any loss as a consequence of this weakness in our processes which existed prior to January 2012."
FCA markets director David Lawton said: "Safeguarding client assets is key to maintaining market confidence if firms fail, Barclays lack of focus on the rules was unacceptable.
"Our on-going scrutiny of firms’ compliance reflects the importance of the regime, which protects custody assets worth £10 trillion held in the UK."
