AMVESCAP: We're Trying to Settle Trading Problems

February 20, 2004 ( - AMVESCAP is working with federal and state regulators to resolve potential abusive problems at its AIM Investments and INVESCO Funds Group.

According to a news release, AMVESCAP’s internal probe found “situations in which the procedures designed to protect its funds and their shareholders from the potential adverse impact of frequent trading and illegal late trading through intermediaries were not completely effective.”

The company said it shared its internal investigation findings with regulators and is in settlement talks for civil enforcement action against INVESCO by the US Securities and Exchange Commission (SEC), New York State Attorney General Eliot Spitzer and Colorado state officials (See  Prosecutors: Invesco Engaged in Massive Market Timing Scheme ). The AMVESCAP statement said its ongoing talks also concern ongoing investigations focused on AIM.

As a result, the company promised to:

  • make full restitution to any of its mutual fund or shareholders to money lost to abusive trading. The amount of the restitution will be determined by outside experts.
  • file lawsuits against third parties “found to have facilitated late trading or any other illegal activity.”

AMVESCAP asserted that it has not turned up any evidence that AIM or INVESCO knowingly participated in illegal fund trading. The AMVESCAP statement is  here .