Stiffer fines for banks caught rigging markets have not undermined financial stability or the solvency of lenders, a senior British regulator said yesterday.

One of the world’s largest global custody banks has been fined a record £126m (€175.6m) by the UK’s Financial Conduct Authority for failing to adequately protect their clients assets.

Aviva Investors has been fined £17.6m after its failure to manage conflicts of interest led to “cherry picking” by traders.