Operational controls caused Aviva £17.6m fine

Allocation policies and correct oversight the solution


A lack of "really basic" controls was the cause of Aviva's £17.6 million ($27.1 million) fine to the Financial Conduct Authority (FCA), rather than the side-by-side management of its hedge funds and long-only funds, according to compliance specialists.

The UK insurance group failed to spot that its fixed-income desk was cherry-picking the best investments for its hedge funds, whose traders get paid based on performance. Traders found that they could execute a trade at 9am, for example, track its

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: