A pair of high-ranking mutual fund executives settled allegations that they permitted market timing and will pay a total of $225,000 in civil penalties, the Securities and Exchange Commission told Reuters for a July 18 report.
Former AIM Distributions President and CEO Michael Cemo and former AIM Advisors Chief Investment Officer Edgar Larsen allegedly authorized 10 market-timing arrangements in which favored investors rapidly traded in and out of AIM Funds portfolios. Cemo will pay a $125,000 penalty and serve a nine-month suspension from the industry. Larsen will pay $100,000 and agreed to a six-month suspension.
A little more than two months ago, Amvescap, which owns AIM Advisors and Invesco Funds, coughed up a $450 million settlement to the SEC over market-timing charges against the companies.