The report says the regulator is expected to hand out a £38m fine for failing to ensure adequate protection for clients' funds.
The punishment relates to the bank's failure to segregate clients' assets properly and maintain adequate records - having been fined £1.1m for the same offence three years ago.
The FCA is understood to have concluded that a much more severe penalty is necessary in order to serve as a deterrent to other firms which continue to demonstrate inadequate controls over clients' assets.
