{"id":1777,"date":"2003-11-25T00:00:00","date_gmt":"2003-11-25T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"amvescap-arm-facing-twin-fines-in-us-funds-probe","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/11\/2003\/amvescap-arm-facing-twin-fines-in-us-funds-probe.html","title":{"rendered":"Amvescap arm facing twin fines in US funds probe"},"content":{"rendered":"<p>FUND manager Amvescap has confirmed it is facing punishment in connection with the mutual fund scandal sweeping across the US, writes Patrick Hosking.<\/p>\n<p>  London-listed Amvescap, best known in Britain for its Perpetual and Invesco brands, faces fines from the Securities and Exchange Commission and from the New York Attorney General Eliot Spitzer.<\/p>\n<p>  Its Denver-based offshoot Invesco Funds Group &#8220;has been advised by the staff of the SEC and the NYAG of their intentions to recommend civil enforcement actions against IFG based on &#8216;market timing&#8217;  activities by certain investors in its mutual fund shares&#8221;, the company said.<\/p>\n<p>  Market timing is the exploitation of pricing inefficiencies by hedge funds and other professionals at the expense of the core customers of mutual funds &#8211; small, longterm investors.<\/p>\n<p>  Amvescap had restricted market timing to certain funds &#8220;which would not be adversely affected&#8221;. Customers who breached these restrictions were turned away and IFG had terminated trading privileges  for customers with $500 million (295 million) in assets in the past year.<\/p>\n<p>  It denied allowing the illegal offence of &#8220;late trading&#8221;, whereby favoured professionals are allowed to trade after the daily deadline imposed on ordinary punters.<\/p>\n<p>  An internal review found that policies designed to detect harmful personal trading by staff had been effective.<\/p>\n<p>  Amvescap shares, down by around 25% since rumours of the US investigations surfaced, rallied 8p to 400p.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FUND manager Amvescap has confirmed it is facing punishment in connection with the mutual fund scandal sweeping across the US, writes Patrick Hosking. London-listed Amvescap, best known in Britain for its Perpetual and Invesco brands, faces fines from the Securities [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1777","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/1777","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=1777"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/1777\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=1777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=1777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=1777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}