Settlement Costs Invesco, AIM $451M

Amvescap, the London-based parent of Invesco Funds and AIM Advisors, said last week it has agreed to a $451 million settlement with several regulators, including $75 million in reduced fees, to resolve charges of improper trading activity by the sister shops.

Under terms of the agreement, Invesco will pay $325 million, while the deal will cost AIM $50 million. In addition, the groups agreed to reduce fees by $15 million a year over a five-year period and surrender an additional $1.5 million for investor education and legal fees to Colorado Attorney General Ken Salazar's office. When the fee reductions are incorporated into the total, the settlement ranks as the third-largest, behind the Bank of America/Fleet deal and the Alliance Capital agreement.