The Financial Services Authority (FSA) has fined Martin Currie Investment Management Limited and Martin Currie Inc £3.5m for failing to manage a conflict of interest between two clients.
It is the largest fine ever imposed by the FSA in a conflict of interest case and the Securities and Exchanges Commission has also fined Martin Currie $8.3m in the US. The FSA said Martin Currie had caused one client (Fund B) to enter into an ill-advised £15m transaction which rescued another client (Fund A) from serious liquidity concerns. Both funds focused on making investments in the China market, and were managed by Martin Currie from its Shanghai office. The firms' misconduct breached FSA Principle 2 (skill, care and diligence), Principle 3 (management and control) and Princi...
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