The Financial Conduct Authority has reduced a fine on a property investment firm from £25m to £17.6m thanks to what it calls the open and cooperative manner' of the company.
Aviva Investors Global Service has been fined £17,607,000 after it was found that it had failed to control conflicts of interest.
It was discovered that between the August 20 2005 and the June 30 2013, the global asset management firm allegedly failed to control conflicts of interest relating to different performance fees' handled by the same desk.
It was found that in May 2013 that Aviva investors noted evidence of delayed booking and the improper trading allocation between 2005 and 2012.
£132m was compensated to eight funds within the Aviva group because of this. Issues with the firm's systems went unchecked for nearly eight years, resulting in what the FCA has described as the unacceptable risk of trader misconduct.
But the authority now says it does not consider the failings of the firm as deliberate or reckless due to the fact that the FCA had been told about the breaches before it discovered them for itself. Furthermore, it was felt that Aviva investors worked in an open and cooperative manner' with the authority, resulting in a financial penalty considered the most appropriate punishment. A 30 per cent discount was also granted due to the firm agreeing to settle at an early stage of the investigation.
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 says Georgina Philiippou, acting director of enforcement at the authority.
The FCA last month blacklisted a property investment portal, as reported on EAT.
Comments