UK watchdog fines Bank of New York Mellon $185 million

LONDON, April 15 (Reuters) - Britain's markets regulator said on Wednesday it has fined Bank of New York Mellon 126 million pounds ($185.30 million) for failing to comply with custody rules.

BNY looks after assets on behalf of clients and the rules ensure that the money is safe even if the bank goes bust.

The Financial Conduct Authority (FCA) said the fine was levied on Bank of New York Mellon's London branch, and on Bank of New York Mellon International Limited.

"The firms' failure to comply with our rules including their failure to adequately record, reconcile and protect safe custody assets was particularly serious given the systemically important nature of the firms and the fact that safeguarding assets is core to their business," Georgina Philippou, acting director of enforcement and market oversight at the FCA said.

($1 = 0.6800 pounds) (Reporting by Huw Jones, editing by Carolyn Cohn)