Breaches cost fund managers pounds 47,000
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Old Mutual Fund Managers, the unit trust management arm of the UK insurance company, was yesterday fined pounds 30,000 by Imro, the fund managers' watchdog, for a series of rule breaches.
The company was also ordered to pay pounds 17,000 for offences that included failing to invest cheques paid to them by their clients quickly enough.
This meant that up to 400 clients who invested with Old Mutual risked financial loss because they were not always able to obtain the best prices for the unit trusts they were buying.
The Imro investigation, carried out in late 1993, also showed that the company, owned by one of South Africa's largest insurance groups, also had inadequate compliance procedures in place. The company's unit trust side manages some pounds 600m of funds in the UK.
Imro said yesterday: "During 1993, Old Mutual Fund Managers did not have the procedures and arrangements in place to ensure that its staff could meet their relevant activities under the regulatory system."
Alan Parsons, managing director at Old Mutual, said: "We have compensated any client who might have been affected at a total cost of pounds 7,500, about pounds 20 per investor.
"We hope that there will be no repeat of what took place two years ago."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments