Amvescap Plc retired the Invesco brand name of its Denver-based retail mutual fund subsidiary Wednesday, one of the oldest monikers in the financial services industry, after reaching a $451 million settlement with securities regulators the previous day, Reuters reports. This is the first case of a company moniker possibly falling prey to the widespread mutual fund industry scandals involving more than a dozen firms.
However, Charles Brady, chairman and chief executive, said Wednesday on a conference call that Amvescap plans to preserve the Invesco name for institutional investment sales. The Invesco moniker, which dates back more than 70 years, became synonymous with improper trading since the SEC filed charges against the company last year.
Brady also said in the conference call that Amvescap will soon announce a third-quarter charge to cover the settlement expenses. Invesco, which was asked to pay $215 in restitution and disgorgement of profits in addition to $110 million in civil penalties, has borne the brunt of Amvescaps settlement. AIM Investments , another Amvescap subsidiary, will forfeit $50 million. Amvescap is also required to pay $75 million in reduced management fees.