Financial Conduct Authority (FCA)
28 April 2014 | Invesco Perpetual
FCA concludes investigation
On Monday 28th April, the Financial Conduct Authority (FCA) confirmed the conclusion of its investigation of Invesco Perpetual’s compliance with certain FCA rules and principles during the period May 2008 to November 2012.
The issues highlighted in today’s announcement are:
- A number of regulatory breaches relating to investment restrictions applicable to Invesco Perpetual’s UK ICVCs. These breaches were all identified by Invesco Perpetual and reported to the FCA.
- All losses arising from these breaches were promptly reimbursed to the funds involved.
- Disclosures concerning the use of, and risks associated with, derivatives were outlined within the relevant ICVC Prospectus; however, these disclosures were not made within the Simplified Prospectuses and were inadequately disclosed within the Key Investor Information Documents (KIIDs).
- The disclosure was rectified within the KIIDs for the two impacted funds in August 2012.
- Invesco Perpetual did not adequately document allocations of fixed income securities when aggregating client orders for UK ICVCs.
- A review by Invesco Perpetual determined that there was no evidence that this impacted investors.
- Certain UK ICVC fixed income transactions were not posted on a timely basis.
- This issue did not result in a requirement to re-price the funds.
Mark Armour, CEO of Invesco Perpetual, said:
“This refers to a period between May 2008 and November 2012, and the FCA has noted that Invesco Perpetual acted promptly to enhance its systems and controls. We are confident that our systems and controls are now strong, effective and compliant with all applicable regulations. The small number of impacted funds were fully reimbursed. In this instance, we clearly fell short of the high standards we consistently strive to deliver. However, we are pleased that this matter has been fully resolved with the FCA and is now closed.”
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