FCA has fined Threadneedle Asset Management Limited £6,038,504 for breach of Principles 3 and 11 between 2010 and 2012. The failings relate to weaknesses in the fixed income area of the firm’s front office, which were highlighted by an internal report and then an ARROW visit from the then FSA. The concerns included the number of errors in the area and fund managers initiating, booking and executing their own trades. The firm told FSA it had appointed individuals to be responsible for all aspects of dealing, but it transpired they had not, and that fund managers continued to initiate, execute and book their own trades. A fund manager, who was not the manager of the relevant funds and did not have authority to make trades, initiated, executed and booked a large trade on behalf of three funds at four times the market value. The back office prevented the transaction from settling. It later transpired there was an intended fraud on the firm. The firm notified FSA of the problem and apologised for the fact that its original response had not properly reflected what it had actually done. FSA required a skilled person’s report, which identified a number of failings. The skilled person followed up the report in July 2013, and found the firm had improved its controls and put in place controls to address the weaknesses the report had identified. (Source: FCA Fines Threadneedle for Fixed Income Desk Failings)
Register now for your free, tailored, daily legal newsfeed service.
Questions? Please contact email@example.comRegister
FCA fines Threadneedle for fixed income desk failings
Popular articles from this firm
If you would like to learn how Lexology can drive your content marketing strategy forward, please email firstname.lastname@example.org.
Related topic hubs
Shell Eastern Petroleum
"I would like to thank the SCCA for this excellent service! The articles included in the newsfeeds are very useful and informative, and the user-friendly format of the newsfeeds means I can quickly glance over the précis in the emails to choose what to zoom in on."