Investec claws back clients' cash after admin blunder
Investec Asset Management reduced the income payments on its £74m managed distribution fund in May without notifying investors after an admin error saw too much money paid out of the fund in previous payments.
The firm says it overpaid investors over two quarterly distribution cycles covering the periods from July 1 to September 30 and October 1 to December 31, 2010.
It says it reduced investors’ payments in May, which covers the period from January 1 to 31 March this year, but did not notify investors.
Money Marketing understands that payments fell by around 80 per cent.
Investec refuses to confirm how many investors were affected by the error, how much money was overpaid or the percentage decrease in the May payments.
Managing director David Aird says: “The income from a couple of fixed-interest investment instruments in the managed distribution fund has been incorrectly accounted for. It is clear we could have been sharper in picking up on this sooner. We are in the process of writing to the investors.”
Highclere Financial Services partner Alan Lakey says: “Investec must have noticed that the payments had increased when it overpaid investors. Bearing in mind the treating customers fairly ethic, it would have been more sensible to spread the clawback over 12 months.”