Aviva hit with £8.2m fine by FCA for asset protection failings

Aviva (Other OTC: AIVAF - news) has been slapped with an £8.2m fine by the City watchdog for breaching rules linked to the protection of client assets.

The FTSE 100 insurer, which also offers savings and investment products, was found by the Financial Conduct Authority to have not had sufficient controls in place at Aviva Pension Trustees UK and Aviva Wrap UK.

The FCA's director of enforcement, Mark Steward, said: "Aviva outsourced the administration of client money and external reconciliations in relation to custody assets, but failed to ensure that it had adequate controls and oversight arrangements to effectively control these outsourced activities."

The company admitted it had breached Client Assets Sourcebook (CASS) rules between January 2013 and September 2015 and netted a reduction in the penalty for reaching an early settlement.

Andy Briggs, chief executive of Aviva UK Life, said: "This should not have happened and we are sorry. Aviva's customers have not suffered any loss and there has been no impact on advisers.

"We have addressed and resolved the issues identified.

"We have made improvements to ensure we have clear oversight of the processes undertaken on the adviser platform, and remain vigilant in our continued monitoring through a dedicated and expert team."