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Old Mutual fined pounds 20,000.

Old Mutual Fund Managers was yesterday fined pounds 20,000 by the City watchdog IMRO, 24 hours after its parent company announced plans to float in London and Johannesburg.

During visits to a number of investment managers seeking to establish how they would cope with a sudden break in the stock market, IMRO inspectors discovered that four Old Mutual unit trusts, all invested in Asia and Latin America had been mis-priced between July 1997 and March 1998.

Old Mutual has since paid compensation of pounds 62,000, part of it to 73 investors and part to the funds which lost out when they sold units for less than the proper price.

The company will also pick up IMRO'S costs of pounds 20,731 and amend its procedures.

The problems arose from failure to take account of currency dealings in the valuation of the funds as well as a failure to keep track adequately of cash flows and outstanding items.
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Publication:The Birmingham Post (England)
Geographic Code:6SOUT
Date:Jan 29, 1999
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