Gartmore faces SEC inquiry
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Gartmore is being investigated by the US Securities and Exchange Commission amid a separate internal investigation into alleged trading breaches by fund manager Guillaume Rambourg.
Details of the inquiry were buried in the firm’s own prospectus which said the firm was: “fully co-operating with the SEC” and if enforcement action is taken it may be required to make financial payments estimated between £1.2m and £1.3m.
Gartmore has insisted that neither its suspended European absolute return fund manager Rambourg or co-manager Roger Guy are involved in the US inquiry.
The fund group hit the headlines last Tuesday following the revelation that Rambourg had been suspended following an internal investigation into an alleged breach of internal dealing rules. It also emerged that Rambourg was fined by the Italian regulator in 2006.
Multi-manager Insight Investment sold its entire stake totalling around £18.2m in the European absolute return fund following Rambourg’s suspension due to uncertainty about Gartmore’s investigation.
Today Old Broad Street Research confirmed that it has suspended the fund’s A rating prior to the completion of Gartmore’s internal investigation but stresses it is not a reflection of its conviction in Guy’s ability to manage the fund and deliver its objective. It says it will continue to monitor the situation closely.
Meanwhile Gartmore has hired former Clifford Chance partner and former FSA lawyer Carlos Conceicao to help investigate Rambourg’s trades, according to reports.
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