The Investment Management Regulatory Organisation took the disciplinary action after Sovereign incorrectly priced eight of its unit trusts as a result of poor internal organisation. More seriously, it charged the fees for managing three of its trusts, carried out by PDFM, to the trusts themselves rather than bearing the costs itself, as the rules require.
Sovereign said there was no suggestion of fraud and investors were "generously" compensated, with an average payment of pounds 35 a head.
Separately, the Securities and Futures Authority has levied a fine and costs of pounds 60,000 on brokers Teather & Greenwood after it failed to prevent potential conflicts of interest arising in relation to four placings of shares. Two of the deals involved Eric Kenelm Ford, a partner, who has been fined pounds 8,000 and agreed to pay costs of pounds 2,000. Both the firm and Mr Ford were reprimanded.