Hedge fund managers operating in the U.K. are required to take various measures to safeguard client money, and the U.K. Financial Conduct Authority (FCA) has stepped up enforcement efforts against firms that fail to comply with such requirements.  For background on U.K. client money rules, see “U.K. Court Decision Helps Define the Amount of ‘Client Money’ That Hedge Funds and Other Clients Are Entitled to Receive After a Brokerage Firm Fails,” Hedge Fund Law Report, Vol. 6, No. 7 (Feb. 14, 2013).  On September 2, 2013, the FCA fined a hedge fund manager more than £7 million in connection with its failure to comply with U.K. client money protection rules.  According to the FCA, while no client money was lost, the firm jeopardized client funds by using improper naming conventions that created confusion about who was the beneficial owner of client accounts and by failing to require that banks holding client accounts confirm the trust status of client money.  See “FCA Imposes Fine and Statutory Ban on Compliance Officer of Investment Advisory Firm for Failure to Safeguard Client Assets,” Hedge Fund Law Report, Vol. 5, No. 20 (May 17, 2012).  This article provides a brief overview of U.K. client money rules and summarizes the factual allegations and fines imposed against the firm.