IMRO has fined Gartmore Fund Managers £50,000 for breaches of its rules between September and Dec...
IMRO has fined Gartmore Fund Managers £50,000 for breaches of its rules between September and December 1997. The fine regards Gartmore incorrectly pricing the assets of 21 of its unit trusts under management.
The pricing errors, says IMRO, occurred as a result of delays within Gartmore's settlements department in the posting of foreign exchange transactions, data entry errors and delays in clearing reconciling items.
The problems arose in the context of an increased volume of trades in Far Eastern securities as a result of abnormal volatility at that time in Pacific Basin markets.
Gartmore discovered the problems in its administration arrangements and reported them to IMRO late January 1998. The group appointed external accountants to assist it in addressing the problems and acted to compensate investors and funds.
Compensation of around £110,000 was paid by Gartmore to approximately 800 retail investors. Adjustments were also made in favour of institutional investors and funds to correct the pricing errors.
Gartmore's £50,000 fine will contribute towards IMRO's investigation costs.
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