The UK Financial Conduct Authority fined Aviva Investors, an asset management company that is part of the Aviva Group, GBP 17. 6 million (approximately US $27.2 million) for not adequately managing conflicts of interests fairly. According to FCA, from August 20, 2005, to June 30, 2013, Aviva employed fixed income traders that worked side-by-side to execute transactions for different funds that paid different levels of performance fees. This created incentives, claimed FCA, for the same traders to favor one fund over another, when the same instruments were transacted. Because of this practice, and weaknesses in Aviva’s post-trade allocation processes that enabled traders to delay allocation of trades intraday until after assessing favorable price moves (i.e., engage in a practice known as “cherry picking”), in May 2013, Aviva paid GBP 132 million (approximately US $203.8 million) to eight funds it managed “that may have been adversely impacted as a result of Aviva Investors’ poor control environment.” Aviva’s internal audit function identified elements relevant to these control weaknesses during four audits during the relevant time, but “steps taken by the Firm failed to adequately address them,” said FCA. In settling this matter with Aviva, FCA noted that the firm has worked openly and cooperatively with FCA and has expended “significant resources” to investigate and fix its control weaknesses.