The Financial Services Authority (FSA) has fined Martin Currie Investment Management Limited and Martin Currie Inc £3.5m for failing to manage a conflict of interest between two of its clients.
It is the largest fine ever imposed by the FSA in a conflict of interest case. In addition to the fine issued by the FSA, the US Securities and Exchanges Commission (SEC) has fined Martin Currie $8.3m (£5.1m) for similar failings. The FSA said Martin Currie had caused one client (Fund B) to enter into an ill-advised transaction which rescued another client (Fund A) from serious liquidity concerns. Both funds focused on making investments in the China market, and were managed by Martin Currie from its Shanghai office. "In April 2009, Martin Currie caused Fund B to invest around £15m...
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