Another two city companies, Stockbroker Rowan Dartington and fund manager Close Investors, have been penalized by the regulatory body concerned for failing to properly ring-fence the money of clients.

The Financial Services Authority yesterday slapped a fine of £511,000 and £98,000, respectively, for failing to ensure that the funds of clients were segregated from their own assets.

A similar action had been initiated by the regulator last week against JP Morgan, who was told to cough up a record £33m for the same offence.

Notably, customers might not have got their money back had either of the companies become insolvent. But, nothing of that sort happened.

Margaret Cole, the FSA's Director of Enforcement and Financial Crime, said: "Rowan Dartington committed a serious breach of our client money rules by failing to protect clients' money".

The breaches, Cole pointed out, took place over a long period and the risks they posed were compounded by the fact that this was a period of market turmoil.

In addition, the FSA's Director revealed that Close Investments put clients at the risk of significant financial loss by failing to segregate client money appropriately for a period of two years, which was simply unacceptable.