Error spotted during broker’s work to centralise client money processing
Towergate “misallocated” £15m of client and insurer money between November 2007 and January 2011, the broker revealed in its third-quarter bondholder report this morning.
The company spotted the error after starting a programme this year to strengthen the control framework and centralise the processing of client money.
As soon as it confirmed the error, Towergate said its management transferred £15m back into client and insurer money accounts and notified the FCA.
The adjustment will not affect Towergate’s cash, profit and loss or net asset position for the first nine months of 2013. However, it will increase group net debt by £15m and the leverage by 0.1.