Simon Treacher, a senior fund manager at BlueBay Asset Management, was also found to be misleading the FSA during an investigation.
Between August and October 2008, Treacher, who worked in the firm’s emerging markets team, was found to be cutting and pasting different figures onto seven original broker quotes used in the valuation process of assets in the funds he managed. These altered quotes led to an uplift of £16.9bn in the independent valuation of the funds over three months.
This led to investors being disadvantaged by around £406,000 in that period. BlueBay has now compensated investors for the loss.
Treacher no longer works at BlueBay and the FSA says BlueBay has no role in the investigation.
FSA director of enforcement and financial crime Margaret Cole says: “Our actions in banning Simon Treacher and imposing a significant fine will send a powerful message of deterrence to others who might be tempted to behave in this way. His conduct, both in mis-marking the funds and his dealings with us as the regulator, lacked integrity. Treacher’s actions undermined BlueBay’s independent valuation process and disadvantaged investors in the affected funds. By making effective use of our powers to prohibit and fine individuals who are not fit and proper to carry out regulated activities, we help achieve our regulatory objectives of maintaining market confidence and protecting consumers.”
Treacher settled his case at an early stage and qualified for a 30 per cent discount meaning the fine was cut from £200,000.