You are here: Home - Saving & Banking - News -

Aviva fined £17.6m by FCA

Written by:
Aviva Investors has been fined £17.6m by the Financial Conduct Authority (FCA), for “systems and controls failures” that led to £132m being paid to eight funds the insurance giant managed.

Aviva announced it had reached an early agreement with the FCA, and unconditionally accepted the FCA’s ruling.

Two years ago, Aviva Investors identified instances of ‘cherry picking’ by two fixed-income trader staff; the duo had been engaged in improperly allocating and delaying the booking of trades.

However, while the perpetrators were sacked, the firm was deemed culpable for the actions of the traders; on certain trading desks at Aviva Investors, funds that paid differing levels of performance fees were managed by the same desk. The FCA ruled that this structure created conflicts of interest, and incentivised traders to favour certain funds over others. As a result, the firm recompensed £132m to eight funds. While this dented the Aviva’s operating profit for 2013, customers were not adversely affected.

While the FCA concluded that Aviva’s failings were severe, the regulator recognised that the firm’s conduct after the issue was identified was impeccable. Aviva moved to notify the FCA as soon as possible, and proactively co-operated with the investigation. The FCA noted in their ruling that the firm’s exemplary behaviour meant it “qualified for a substantial reduction in penalty.”

“We fully accept the conclusions of this investigation,” said Euan Munro, head of Aviva Investors. “We have fixed the issues, improved our systems and controls, and ensured no customers have been disadvantaged. We have also made substantial changes to the management team which is leading the turnaround of Aviva Investors.”


Related Posts


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week