In October 2004, AIM Advisors was included in a settlement reached on market timing violations in which the Securities and Exchange Commission (SEC) found, among other things, that “ between January 2001 and September 2003 AIM Advisors entered into 10 negotiated, but undisclosed, market timing agreements with individuals and entities, allowing the timers to exceed AIM Funds’ per-year 10-exchange limit, and to make trades, valued collectively at tens of millions of dollars, within AIM Funds.” (See Regulators Wrap Up INVESCO, AIM Settlements )
The SEC held former AIM President and CEO Michael Cemo and former Chief Investment Officer Edgar Larsen responsible for allowing these market timing agreements.
According to Reuters, the settlement charges Cemo with a $125,000 penalty and a nine-month suspension from working with a registered investment firm. Larsen’s penalty is $100,000 and his suspension is for six months.
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