Bristol stockbroker fined over computer error

A Bristol-based stockbroking firm has been fined £511,000 by the finance industry's watchdog after failing to properly protect clients' money.

Rowan Dartington, which also has branches in Taunton and Weston-super-Mare, failed to segregate clients' money into separate trust accounts.

The Financial Services Authority (FSA) found the error happened after the firm introduced a new computer system.

The firm's parent company said no client money had been lost.

Trust status

A statement from the Astaire Group said the firm had co-operated with the watchdog's investigation and welcomed its findings which related to "historic issues".

"Not only has Rowan Dartington's co-operation with the FSA resulted in a much reduced fine than would otherwise have been the case, but it has also helped to develop an operationally strengthened and more robust service to clients," the statement added.

Firms are required to keep client funds segregated in accounts with trust status, in order to protect the money if the stockbroker became insolvent.

The FSA heard Rowan Dartington had failed to do so between 2007 and 2009.

As a result of the computerised accounts glitch, Rowan Dartington was also unable to account for £1.4m of its own assets at the time of the FSA investigation, and it has since written off more than £1m of this money.