Financial Insights

Invesco faces global probe after whistleblower’s complaint

Invesco, one of America’s largest fund management companies, has come under investigation from financial regulators of America, India and China under the allegation of misappropriating fixed income schemes.

Four days ago, an Indian fund manager turned whistleblower, filed a complaint in India and US alleging irregularities in the company’s fixed income schemes. Invesco claimed innocence and the whistleblower was sacked a few days later.

Today, SEBI in India, SEC in the US and SFC in China are conducting an intense probe and investigating, mainly in the company’s Indian arm.

Sources in SEBI say the allegations pertain to Invesco illegally moving ‘bad papers’ in a few fixed income schemes to various jurisdictions to avert potential damages. It is alleged that an attempt was made to hide bad investments in some of the Indian schemes to other global funds while other schemes still kept buying such bad papers.

“We cooperate with any regulatory inquiries (including any examinations or investigations) in a manner that is transparent and consistent with global best practices. As part of corporate policy, it will be inappropriate for us to divulge any individual or employment details of any of our employees. Our portfolios and business remain unaffected. All Invesco funds and investment strategies operate under our global risk management framework and invest according to the parameters and guidelines set out in the relevant prospectus or other governing document,” a spokesperson from Invesco said.

Highlight by Aman Agarwal.

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