Date: 5th October 2016
Author:
Type: In the news
The Financial Conduct Authority (FCA) has fined Aviva Investors £17.6 million (€24 million) after finding that the group had failed to manage conflicts of interest adequately, manipulating deals and failing to prevent an "abusive practice" known as cherry picking.
The traders could delay recording the allocation of executed trades for several hours so that they would be able to assess the trade's performance during the course of the day. When finally the trade was recorded, they would allocate the ones that benefitted from favourable intraday price movements to one fund and trades that did not to other funds. The practice allows traders to benefit financially, as they receive a cut of the fee.
Read the full story in Funds Europe here.