FCA censures Sapia and mandates £19.6m client restitution
Firms must enforce client-money segregation controls in account handling
Change
UK's FCA censured Sapia and required a £19.6m payment to compensate Wealthtek clients for failures in protecting client money.
Why it matters
The action targets inadequate separation of duties in client-money accounts, increasing misuse risk. The censure plus restitution outcome signals enforcement focus on segregation controls and supervisory failures across regulated firms.
Implications
- — Client-money teams must segregate payment and reconciliation roles immediately — failures risk regulatory enforcement
- — Firms must review CASS compliance controls — gaps expose them to restitution and penalties
Who is affected
- — Client-money and compliance teams at FCA-regulated firms