Britain’s financial markets regulator imposes £18.6M fine on Invesco

British financial markets regulator has slapped retail investment manager Invesco Perpetual with a huge fine of £18.6 million (US$31.3 million) for failing to comply with the country's risk limits and misleading investors.

The Financial Conduct Authority (FCA) found Invesco's operations in breach of investment limits over a period of four years until November 2012, due to which investors lost £5 million.

The FCA said Invesco violated the rules on a total of thirty-three occasions across fifteen of its funds, which collectively represented 70 per cent of assets under its management.

Tracey McDermott, head of the FCA's enforcement wing, said, "In this case, investors of all sizes trusted Invesco Perpetual to manage their money. They signed up for a certain level of risk but we found Invesco Perpetual's actions were at odds with investors' reasonable expectations."

However, the regulator gave its standard 30 per cent discount to Invesco for cooperating with the investigators.

Invesco Perpetual CEO Mark Armour admitted that the company had fallen short of standards but added that he was confident it had mended its ways and now its systems & controls are strong, effective as well as compliant with all applicable regulations.

Invesco runs nearly £47 billion worth of Invesco Perpetual branded funds, and much of these funds have been invested by retail customers.