The Financial Services Authority has imposed a fine of £ 9.5 million on BlackRock for failing to protect as much as £ 1.3 billion of client deposits with the company.

The asset management firm had deposited the money with third party banks and it did not inform its customers that the funds are not owned by BlackRock. The funds were deposited in order to ring-fence client funds if BlackRock falling into administration.

FSA director of enforcement Tracey McDermott expressed that the fine should be a reminder to all the firms that the regulator places importance to the protection of client money. The company said that it regrets the error and pointed out that no client has suffered any loss because of the error.

BlackRock Investment Management (UK) Ltd, a unit of the company has to pay the fine to the UK regulator as it did not take care to identify and protect client money. It failed to send trust letters for some of its money-market deposits with third-party banks.

The average daily balance affected was more than 1.36 billion pounds, the regulator said in a statement.