Watchdog fines Invesco £18m for risking its clients’ money
Tuesday 29 April 2014
Invesco Perpetual has been fined £18.6m by the City regulator for exposing clients to too much risk, including those who invested with its former star fund manager Neil Woodford.
The Financial Conduct Authority said that between May 2008 and November 2012 Invesco, which has £71bn under its control, breached investment guidelines and exposed customers to £1bn of derivatives without properly spelling out the risks to them.
The mishaps led to losses of £5m across three of its funds including the Invesco Perpetual High Income Fund and Income Fund, which were under Mr Woodford’s control until recently. He left the company in March after more after a quarter of a century to set up a new venture with Oakley Capital.
Mark Armour, the chief executive of Invesco Perpetual, said that all the losses made in the funds were reimbursed by the company. “We clearly fell short of the high standards we consistently strive to deliver. However, we are pleased that this matter has been fully resolved with the FCA and is now closed,” he added.
According to the FCA final notice, Invesco broke its rules on 33 separate occasions. These included over-exposing investors to individual companies and failing to record trades on the same day they were made.
The company agreed to settle early with the FCA. Had they not, the penalty would have been £26.6m.
Tracey McDermott, the FCA’s director of enforcement, said: “The FCA takes action where we see risks to consumers, not just after they suffer losses.
“In this case, investors of all sizes trusted Invesco Perpetual to manage their money.
“They signed up for a certain level of risk but we found Invesco Perpetual’s actions were at odds with investors’ reasonable expectations.”
- 1 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 5 Men behaving badly: Urinating while standing, 'manspreading' and the gendering of selfishness
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
Ellen DeGeneres leads Johnny Depp, Gwyneth Paltrow and Paul Bettany in revealing game of Never Have I Ever
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...