FCA fines Aviva Investors £17.6m for conflict of interest failings

The problems related to a side-by-side management strategy used between August 2005 and June 2013 within the group's fixed income team where funds that paid differing levels of performance fees were being managed by the same desk. This type of incentive structure created conflicts of interest as bond traders had an incentive to favour one fund over another, the FCA said. This risk was particularly acute on desks where funds traded in the same instruments. The FCA found that there were significant weaknesses in Aviva Investors' risk management framework and the systems and controls tha...