Barclays has been fined a record £38m ($62.3m) by the Financial Conduct Authority (FCA) for failing to properly protect clients’ custody assets worth £16.5 billion.

This is the highest fine ever imposed by the UK regulator for client assets breaches, reflecting ‘significant weaknesses’ in the systems and controls in Barclays’ Investment Banking Division between 2007 and 2012.

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According to the FCA, Barclays failed to properly apply to the rules when opening 95 custody accounts in 21 countries.

These failings were compounded by flaws in account naming or incorrect data that suggested assets belonged to Barclays instead of its clients, the regulator said in a release on the website.

David Lawton, FCA director of markets, 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.’

In its final notice to the lender, the FCA said no customers of Barclays’ other business operations, including Personal and Corporate Banking (including Wealth) and Barclaycard, were impacted by the breaches or failings in this case.

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Barclays agreed to settle at an early stage for the fine, qualifying for a 30% discount. Without this, the FCA would have imposed a penalty of £54m.

The FCA and FSA have previously imposed 16 fines for misconduct relating to client assets or client money. Barclays Capital Securities Limited, a subsidiary of Barclays was fined fined £1.1m in 2011 for similar misconduct in relation to client money.