PwC wrongly reported to the Financial Services Authority that JP Morgan, a sponsor of the Institute of Financial Planning, had segregated and protected client money between 2002 and 2008 and was complying with Client Money Rules.

It failed to notice the firm had placed billions of pounds of clients’ money with its own, causing clients’ money to be put at risk.

As such, the Accountancy and Acturial Discipline Board imposed a ‘severe reprimand’ on PwC.

The sum is the largest fine ever issued by the Accountancy and Acturial Discipline Board.

PwC also failed to carry out proper due diligence and obtain sufficient evidence to base its opinion on.

The spokesperson for the AADB said: “PwC accepted that its conduct had, in relation to the reports it prepares and submitted to the FSA for the years ended 31 December 2002-31 December 2008, fallen short of the standards reasonable to be expected of members and member firms.

“In particular, PwC accepted that it did not carry out its professional work in relation to these reports with due skill, care and diligence and with proper regard for the applicable technical and professional standards expected of it.”

JP Morgan was fined £33m for the breaches by the FSA back in 2010, the largest ever fine issued by the FSA.