Too many City firms are failing to file properly checked and audited reports to regulators on the client money they hold, the chair of the Financial Conduct Authority has warned.

The FCA’s rules on client money were put through a major overhaul in 2014 in response to the years-long odyssey of winding up the collapsed investment bank Lehman Brothers. They require banks, fund managers and others to submit annual reports to the regulator showing they have accurate records of all the assets they hold on clients’ behalf.