In a Final Notice issued on 24 February 2015, the FCA fined Aviva  Investors  £17,607,000  (Stage  1: 30% discount: breaches of principles 3 & 8).  The  FCA  concluded  that during the relevant period of 20 August 2005 to 30 June 2013, Aviva Investors failed to exercise adequate and effective control over the inherent conflicts and risks associated with its side-by-side management of funds that paid differing levels  of  performance  fees  on  the  same desk within its fixed income business. This incentive structure created conflicts of interest as side-by-side traders had  an  incentive  to  favour funds paying  higher performance  fees  over others.  The  FCA found  that Aviva Investors operated a poor control environment as  traders  could exploit the weakness  in  the  systems  and  processes  to  delay  recording the allocation of executed trades for several hours. The  delay  enabled traders to cherry pick trades to increase incentive payments by allocating trades that benefitted from favourable intraday price movements to some funds and trades that did not to other funds. The Final Notice reinforces the FCA’s focus on the effective management of conflicts of interest by asset  managers.