The firm issued a statement addressing the illegal practice of late trading, as well, saying that it never knowingly permitted late trading to occur, nor did it ever selectively disclose holdings to select investors.
As for market timing, the firm said it tried to limit asset allocators and momentum traders to only certain funds. " These restrictions [also] included limitations on the dollar amount and frequency of exchanges, restrictions on when exchanges could be made and reservation of the right to reject any exchange," Amvescap said.
Over the past 12 months, the firm said, more than $500 million in momentum trades were turned away.
- Meanwhile, Security Trust Co. and a number of its top executives will be criminally charged today, Reuters reports. "Weve cleaned house. The people who were directly involved in doing any dealings with Canary Capital Partners are no longer with the company," Nancy Murphy, a spokeswoman for Security Trust, told Reuters, declining further comment.
- And joining a number of other leaders in the industry who have been sounding warnings on the widening probe, or Fundgate, as Money Management Executive has dubbed it,
Goldman Sachs Chairman and CEO Henry Paulson toldCNBC that he fears for investor confidence. New laws will only be the first step, he said. Investors must believe the industry has made categorical changes.
