LONDON Jan 14 British insurance group Aviva
has toughened oversight of trading activities at its fund
management arm after discovering breaches of dealing policy
between 2006 and 2012, according to a company filing.
Aviva Investors says it has set aside up to 92 million
pounds to cover potential claims related to breaches of dealing
policies regarding "allocation of gilt trades between 2006 and
2012", according to financial statements filed at Companies
The firm blamed the breaches on two former employees who it
did not name and said it had conducted an internal probe which
was reviewed by auditor PricewaterhouseCoopers.
"Controls have been tightened and implementation of the
recommendations from this review will help ensure that we meet
best practice and our policies and procedures are robust," Aviva
said, adding it had also informed regulators.
In a separate letter to clients of Aviva Investors dated
December 9 2013 and signed by the division's stand-in boss John
Misselbrook, the firm says customers "will not be
An Aviva spokesman declined to comment beyond the contents
of the two documents.
The provision for possible compensation comes at an
inauspicious time for the division, coinciding with the arrival
of its new Chief Executive Euan Munro who joins from rival
Aviva Investors is at the centre of a group wide turnaround
being driven by the insurer's chief executive Mark Wilson, who
joined last year after a shareholder rebellion led to the
departure of his predecessor.
Misselbrook's letter to clients also highlights the closure
of its hedge fund operations, which make up 0.2 percent of its
246 billion pounds in assets, on the basis they "no longer fit
with the future investment proposition."
Aviva reports full year earnings for 2013 on March 6.