Operational controls caused Aviva £17.6m fine
The UK investor has since segregated its hedge funds from its long-only funds, but compliance specialists say side-by-side management does not have to cause problems
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
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