Bank Of NY Mellon In U.K. Fined $185 Million Over Custody Breach

The U.K.'s financial regulator has imposed a �126 million ($185 million) fine on The Bank of New York Mellon London Branch and The Bank of New York Mellon International Ltd. for failing to comply with rules on safe custody of assets. "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. Had the firms become insolvent, the total value of safe custody assets at risk would have been significant," the Financial Conduct Authority said in a statement Wednesday. The breaches occurred at a time of "considerable stress" in the market, between Nov. 1, 2007 and Aug. 12, 2013, the FCA added. The banks, which are part of The Bank of New York Mellon Group , received a 30% discount on the penalty for agreeing to settle the FCA's investigation at an early stage.