A London stockbroking firm has been fined £110,000 by the Financial Services Authority for failing to protect its customers from identity fraud.

Merchant Securities Group, which has about 850 retail and institutional customers, relied on being able to recognise customers' voices to verify their identities over the phone, as well as informal conversation about holidays and hobbies. The company was also chastised for storing tapes containing unencrypted customer information in a member of staff's home.