The FCA charges that BNY Mellon did not observe regulations governing custody of client assets, and failed to install satisfactory systems or controls to ensure their protection, between November 2007 and August 2013.

The firm pooled managed client assets in global platforms, but did not record with which BNY Mellon Group entity clients had contracted – this policy meant that BNY Mellon was unable to meet its obligations under the Custody Rules.

Had BNY Mellon not settled with the regulator, the fine would’ve increased to £180m.

“BNY Mellon’s failure to comply with our rules, including their failure to adequately record, reconcile and protect safe custody assets was particularly serious given the systemically important nature of the firms and the fact that safeguarding assets is core to their business,” Georgina Philippou of the FCA said. “Had the firms become insolvent, the total value of safe custody assets at risk would have been significant. This is compounded by the fact that the breaches took place at a time when there was considerable stress in the market.”