Imro fines unit trust manager pounds 225,000
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Your support makes all the difference.Financial regulators have fined a unit trust group and a City stockbroking firm a total of pounds 285,000 following regulatory breaches. The fine of pounds 225,000 levied on Sovereign Unit Trust Managers comes on top of pounds 120,000 compensation it has been forced to pay investors in some of its unit trusts, plus pounds 1.27m it has had to pump into the funds as a result of mispricing and wrongful payment of fees.
The Investment Management Regulatory Organisation took the disciplinary action after Sovereign incorrectly priced eight of its unit trusts as a result of poor internal organisation. More seriously, it charged the fees for managing three of its trusts, carried out by PDFM, to the trusts themselves rather than bearing the costs itself, as the rules require.
Sovereign said there was no suggestion of fraud and investors were "generously" compensated, with an average payment of pounds 35 a head.
Separately, the Securities and Futures Authority has levied a fine and costs of pounds 60,000 on brokers Teather & Greenwood after it failed to prevent potential conflicts of interest arising in relation to four placings of shares. Two of the deals involved Eric Kenelm Ford, a partner, who has been fined pounds 8,000 and agreed to pay costs of pounds 2,000. Both the firm and Mr Ford were reprimanded.
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