Sixteen of the money manager’s 700 clients have pulled their accounts because of concerns about the activities at the Canadian fund manager, according to The Globe and Mail newspaper.
The firm also picked up 10 new clients with C$250 million during the period, but others are still considering the matter – including the City of Toronto, which froze its account at RT Capital on June 30.
“There are some [clients] who are absolutely rigid in their values and the integrity of the people they deal with, and this is something that was obviously unacceptable to them,” Wilson told The Globe.
Settlement After “Math”
RT Capital paid a $3-million fine, while six senior executives resigned or retired, to settle charges that it artificially inflated the prices in 53 stocks over a nine-month period.
Wilson’s arrival has gone a long way toward restoring confidence in the fund manager, according to rivals.
Several fund managers have reportedly been trying, without much success, to lure clients from RT Capital, according to The Globe.
In the past RT Capital relied on brokerage houses to detect and stop illegal activities, such as “high-closing.”
They have reportedly improved their systems so that RT Capital can now monitor all its trading activity.