Aviva Investors Fined £17.6m For Failings

Written By Unknown on Selasa, 24 Februari 2015 | 18.56

The City regulator has fined investment firm Aviva Investors £17.6m for systems and controls failings that "led to its failure to manage conflicts of interest".

The Financial Conduct Authority (FCA) explained that the case centred on the payment of performance fees over almost eight years from August 2005.

It said the company's use of a side-by-side management strategy within its Fixed Income area meant that traders had an incentive to favour one fund over another because of varying levels of performance fees.

The FCA said the conflicts of interest were identified by the company but its risk management framework was so weak it failed to prevent what it called an "abusive practice known as cherry picking".

It said Aviva Investors' processes meant traders could delay recording the allocation of executed trades for several hours, allowing traders to allocate trades to favourable funds.

Georgina Philippou, acting director of enforcement and market oversight at the FCA, said: "Ensuring that conflicts of interest are properly managed is central to the relationship of trust that must exist between asset managers and their customers.

"It is also a fundamental regulatory requirement. This case serves as an important reminder to firms of the importance of managing conflicts of interest effectively by implementing a robust control environment with effective systems to manage the risks.

"Not doing so risks customers' interests being overlooked in favour of commercial or personal interests.

"While Aviva Investors' failings were serious, the FCA has recognised that its actions since reporting its failings were exceptional.

"The level of co-operation during the investigation and commitment to ensuring no customers were adversely impacted meant it qualified for a substantial reduction in the penalty."

Compensation totalling £132,000 was paid to eight funds impacted by the failures.

Euan Munro, Aviva Investors' chief executive, said: "We fully accept the conclusions of this investigation.

"We have fixed the issues, improved our systems and controls and ensured no customers have been disadvantaged.

"We have also made substantial changes to the management team which is leading the turnaround of Aviva Investors.

"We have a clear focus on simple and specific investment outcomes for clients and we are delivering strong levels of investment performance within a robust control environment."


Anda sedang membaca artikel tentang

Aviva Investors Fined £17.6m For Failings

Dengan url

http://temannyakawanya.blogspot.com/2015/02/aviva-investors-fined-a176m-for-failings.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

Aviva Investors Fined £17.6m For Failings

namun jangan lupa untuk meletakkan link

Aviva Investors Fined £17.6m For Failings

sebagai sumbernya

0 komentar:

Posting Komentar

techieblogger.com Techie Blogger Techie Blogger